Industrial Automation Magazine India

LANXESS achieves full-year target for 2019 despite challenging environment

Published on : Tuesday 17-03-2020

2020 guidance: operationally stable; however, effects from coronavirus burden; EBITDA pre exceptionals of EUR 900 million to EUR 1.0 billion.

 

India, March 16, 2020 – Specialty chemicals company LANXESS had a successful fiscal year 2019 in an increasingly challenging economic environment. EBITDA pre exceptionals increased by 3.3 per cent to EUR 1.019 billion. As guided, the earnings came in roughly in the middle of the range of EUR 1.00 billion to EUR 1.05 billion. In the previous year, the company generated earnings of EUR 986 million.The strong results in the Advanced Intermediates, Specialty Additives and Performance Chemicals segments compensated for the decline in the Engineering Materials segment, due in particular to the weak demand from the automotive industry. Earnings were supported by advantageous exchange-rate effects, especially from the US dollar. The EBITDA margin pre exceptionals for the full year reached 15.0 per cent for the first time in the company’s history, against 14.4 percent a year ago.

“In 2019’s difficult economic environment, we withstood the first true test since our realignment. LANXESS is now more profitable and more stable than ever,” said Matthias Zachert, Chairman of the Board of Management of LANXESS AG. “Even in these challenging times, we increased our margin to a new record high and further strengthened our financial base for new growth projects. In 2020, we will be increasingly devoted to the high-margin consumer protection business and new applications in the field of battery technology.”

As of December 31, 2019, the Leather business unit is recognised as a discontinued operation. Sales and operating earnings – and the corresponding prior-year figures – were restated. As part of the strategic realignment the company intends to sell the business unit. LANXESS already disposed of the chrome chemicals business and its interest in the chrome ore mine in 2019.

At EUR 6.802 billion, LANXESS’ group sales were around the previous year’s level (EUR 6.824 billion). At EUR 240 million, net income from continuing operations was 14.9 percent down on the previous year’s figure of EUR 282 million. It was reduced in particular by exceptional expenses for the realignment of the organometallics business.