German chemical producer Lanxess is apparently much deeper in the financial mire than initially believed. The specialty chemicals company said on Feb. 26 that impairment tests under IAS 36 international accounting standards had pointed to exceptional charges for the fourth quarter of 2013 that will lead to a full-year net loss.

The impairment charge of  €257 million and the expected development of overcapacities in important rubber markets, Lanxess added, will reduce cash contributions of its business units Keltan Elastomers in the Performance Polymers segment and Rubber Chemicals in the Performance Chemicals sector to the extent that the businesses may no longer worth their book value.

Added to the €30 million brought forward with the company's "Advance" efficiency program announced in September 2013, these charges are expected to result in a net loss of €159m for the full year.

Lanxess' final figures for 2013 will be presented on Mar. 20 by acting CEO Bernhard Düttmann, currently chief financial officer. Axel Heitmann, CEO since the split from Bayer in 2004, will step down on Feb. 28. Former chief financial officer Matthias Zachert, now serving in the same position at German chemicals and pharmaceuticals producer Merck KGaA, will take over on May 15.