LANXESS expects Q1 2013 EBITDA pre exceptionals significantly below previous year

Contrary to the usual seasonal trend, the low level of demand that was already apparent in the second half of 2012 has continued into the start of the year in most businesses. Against the backdrop of current weak demand in the tire and automotive industries in Europe, LANXESS expects a significantly lower year-on-year EBITDA pre exceptionals of between EUR 160 and 180 million in the first quarter of 2013. This estimate already reflects start-up costs of EUR 20 million for the new butyl plant in Singapore. In the previous year’s quarter, LANXESS achieved an EBITDA pre exceptionals of EUR 369 million, which was the company’s strongest quarter ever.

Based on the weak business development in the first quarter, LANXESS currently expects that the EBITDA pre exceptionals in the business year 2013 will not reach the record level of the previous year. As usual, LANXESS will give a more precise outlook for the current full year, when it publishes its first-quarter report on May 8, 2013.

In this persistently volatile environment, LANXESS will continue to focus on cost discipline and its proven flexible asset management and expects a pick-up in demand in the second half of the year, so that the full year 2013 can develop into another positive one. The company is sticking to its mid-term targets of EUR 1.4 billion and EUR 1.8 billion EBITDA pre exceptionals in 2014 and 2018 respectively.