Lanxess's textile processing unit decline in Europe & Americas, Q2
26 Aug '05
6 min read
Sales of the Engineering Plastics segment expanded by 3.9 percent to EUR 448 million (EUR 431 million). The pillar of this segment's sales growth was the Semi-Crystalline Products business unit, which recorded an upward business trend. As was already the case in the first quarter of 2005, slight price increases in the Styrenic Resins business unit were accompanied by a drop in volumes resulting from the company's strategy of forgoing unprofitable business.
Volume and price increases led to a 26.9 percent increase in sales of the Chemical Intermediates segment, to EUR 406 million (EUR 320 million). Substantial price- and volume-based gains were achieved in the Basic Chemicals business unit, with Inorganic Pigments also recording small increases from both prices and volumes.
Due to an improved situation for agrochemicals and pharmaceutical intermediates, the Fine Chemicals business unit achieved significant, largely volume-driven sales growth from the weak prior-year quarter. Fueled mainly by improved capacity utilization and better cost structures, EBITDA pre exceptionals in the Chemical Intermediates segment rose 90.3 percent year on year to EUR 59 million (EUR 31 million), and the EBITDA margin pre exceptionals advanced from 9.7 percent to 14.5 percent.
Sales of the Performance Chemicals segment grew 4.3 percent from the prior-year period, to EUR 511 million (EUR 490 million). The Rubber Chemicals, Ion Exchange Resins and Leather business units, in particular, succeeded in passing the higher raw material costs through to the market. The Textile Processing Chemicals business unit once again posted a decline in sales in Europe and the Americas. Effective cost management led to a 34.9 percent increase in EBITDA pre exceptionals for the segment, to EUR 58 million (EUR 43 million). The EBITDA margin pre exceptionals rose 2.6 points to 11.4 percent.
LANXESS is a leading chemicals group with production sites and agencies all over the world: a global player in the fields of chemicals, plastics and rubber
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