LANXESS with substantially better Q4 2012 earnings year-on-year
- FY 2012 guidance achieved
- Challenging start to 2013
The specialty chemicals company LANXESS AG has achieved substantially higher earnings in the fourth quarter of 2012 compared to the same quarter in 2011, despite soft underlying demand.
LANXESS increased EBITDA pre exceptionals by 37 percent year-on-year to EUR 239 million from EUR 174 million a year ago. Fourth quarter sales were flat year-on-year at EUR 2,123 million and net income increased to EUR 51 million from EUR 5 million a year earlier. Earnings per share (EPS) grew to EUR 0.62 compared to EUR 0.06 a year earlier.
The main factors supporting this result were the company’s strict cost discipline and proven flexible asset management. In addition, the fourth quarter of 2011 included EUR 35 million in charges for inventory devaluations.
As a result, LANXESS achieved an EBITDA pre exceptionals of EUR 1,225 million in the business year 2012. This was an increase of 7 percent compared to 2011 and the company achieved its full-year guidance of 5-10 percent earnings growth. 2012 sales increased by 4 percent year-on-year to EUR 9,094 million, net income increased by 2 percent to EUR 514 million and EPS rose 2 percent to EUR 6.18.
Soft underlying demand in the second half of 2012 has continued into 2013 across most businesses, against the usual seasonal trend. In order to counter the current soft demand, the company is applying its proven flexible asset management strategy. Therefore, LANXESS plans to temporarily shut down its butyl rubber plant in Belgium and its EPDM-production in Texas, USA, in the coming weeks.
However, LANXESS expects demand to pick up during the year and is strategically well positioned to benefit from the expected recovery in the global economic development.
LANXESS remains confident to achieve its mid-term earnings goals of EUR 1.4 billion and EUR 1.8 billion EBITDA pre exceptionals in 2014 and 2018 respectively.LANXESS will publish its full-year earnings for 2012 at its annual press conference in Dusseldorf on March 21, 2013. All numbers in this release are preliminary and unaudited.
