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Lanxess to start massive job cuts

"As of 2016, we will fully benefit from the savings made as a result of the realignment," said Zachert. "We can then start thinking cautiously about growth again – with the focus on our Advanced Intermediates and Performance Chemicals segments."

Sales in the third quarter of 2014 were on the level of the prior-year quarter, at EUR 2.04 billion, with marginally higher volumes compensating slightly lower prices. EBITDA pre exceptionals rose by 12.3 percent from EUR 187 million in the prior-year quarter to EUR 210 million. The increase was attributable among others to savings in administration, higher plant utilization rates and the absence of
inventory write-downs. The EBITDA margin pre exceptionals improved accordingly to 10.3 percent, compared with 9.1 percent in the prior-year period. All three segments contributed to the earnings increase. Net income rose to EUR 35 million in the reporting period, against EUR 11 million in the prior-year quarter. Net financial liabilities declined, mainly on account of the capital increase, to around EUR 1.4 billion, compared with EUR 1.7 billion at the end of 2013.

Almost all business units in the Performance Polymers segment were affected by falling prices and lower volumes. Overall, sales declined by 4.3 percent compared with the prior-year quarter, to EUR 1.05 billion. Earnings were improved by lower manufacturing costs, reduced spending on research and development and the absence of inventory write-downs. EBITDA pre exceptionals of the segment advanced by 10.7 percent to EUR 93 million.

Sales in the Advanced Intermediates segment rose in the third quarter by 5.2 percent to EUR 424 million. This increase was mainly driven by continued strong demand for agrochemicals. EBITDA preexceptionals of the segment moved ahead by 4.2 percent to EUR 74 million.

Sales in the Performance Chemicals segment advanced by 2.7 percent to EUR 561 million, with the Leather and Inorganic Pigments business units benefiting from an increase in volumes. EBITDA preexceptionals rose by 5.6 percent to EUR 76 million particularly as a result of higher prices and volumes.

Lanxess confirms its guidance for the full year 2014 and continues to expect EBITDA pre exceptionals in the range of EUR 780 million to EUR 820 million. Initial savings of EUR 20 million generated from the realignment program will mitigate some burdens expected in the fourth quarter.

Read more: Work 6 Plastics 535