Lanxess's textile processing unit decline in Europe & Americas, Q2
26 Aug '05
6 min read
Leather chemical maker LANXESS AG announced its Sales and earnings of LANXESS jump in the second quarter of 2005.
Sales climb by more than 11 percent to EUR 1.86 (1.67) billion
EBITDA pre exceptionals advances to EUR 163 (115) million
EBITDA margin pre exceptionals improves to 8.8 (6.9) percent
Second phase of restructuring announced
Savings potential of EUR 60 million identified
EBITDA pre exceptionals now expected to total EUR 550 to 560 million for the full year 2005
In the second quarter of 2005, chemicals company LANXESS AG grew sales by more than 11 percent to EUR 1.86 billion (Q2 2004: EUR 1.67 billion). Earnings before interest, taxes, depreciation and amortization (EBITDA) pre exceptionals rose by nearly 42 percent from the prior-year quarter, to EUR 163 million (EUR 115 million).
The EBITDA margin pre exceptionals improved to 8.8 percent (6.9 percent). The operating result (EBIT) climbed to EUR 77 million (EUR 10 million). "Restructuring measures already initiated and the consistent pursuit of our price-before-volume strategy have had a positive effect on earnings," explained LANXESS Management Board Chairman Axel C. Heitmann. "However, we continue to suffer from structural disadvantages. The realignment of the LANXESS Group will therefore remain our top priority so that we can catch up with the competition in terms of earnings."
Against this background the LANXESS CEO announced a second restructuring package designed to achieve annual savings of EUR 60 million through process optimization, efficiency improvement and cost reduction. Two-thirds of this savings volume is to be achieved by 2007, and the full annual amount starting in 2008.
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