Germany: Successful Fiscal Year 2015

Lanxess to Lay the Foundations for Growth

Page: 2/2

Related Companies

Business Development by Segment

In 2015, sales in the Performance Polymers segment declined by 4.5 percent compared with the prior year, to around €3.9 billion. Despite the challenging environment, EBITDA pre exceptionals increased by 28.1 percent to €502 million, which was substantially higher than the prior-year level of €392 million. Earnings were lifted by favorable exchange rates, savings achieved by the realignment program and higher volumes. The EBITDA margin pre exceptionals of the segment increased accordingly from 9.5 percent previously to 12.7 percent.

In the Advanced Intermediates segment, 2015 sales were slightly down on the prior year at around €1.8 billion. EBITDA pre exceptionals increased by 10.1 percent to €339 million, compared with €308 million a year earlier. Earnings were buoyed by the strong U.S. dollar, the continued good demand for agrochemicals and from other markets, and savings achieved by the realignment program. At 18.6 percent, the EBITDA margin pre exceptionals was substantially higher than the figure of 16.7 percent posted in 2014.

Gallery

Sales in the Performance Chemicals segment improved by 4.8 percent in 2015 to around €2.1 billion. EBITDA pre exceptionals advanced by a substantial 21.2 percent from the prior-year level of €269 million to €326 million. Favorable exchange rate developments in all business units, savings achieved by the realignment program and lower raw material prices resulted in improved earnings. The EBITDA margin pre exceptionals improved accordingly to 15.6 percent, compared with 13.5 percent in 2014.

Outlook for 2016

Lanxess has had a good start to the new fiscal year and is forecasting EBITDA pre exceptionals between €240 million and €260 million for the first quarter of 2016. The company is expecting stable to slightly positive business development for the Advanced Intermediates and Performance Chemicals segments for the full year 2016. It also assumes good volume growth in the High Performance Materials segment. The challenging competitive environment is expected to persist in the synthetic rubber business, which could result in additional margin pressure. Lanxess is assuming EBITDA pre exceptionals for the full year 2016 of between €880 million and €930 million.

(ID:43942608)