Lanxess Posts €181 Million Q2 Net Income

Lanxess posted second quarter net income of €181 million or €2.17 per share, up from €131 million or €1.57 per share last year. EBITDA pre exceptionals in the second quarter rose 26% year-over-year to €339 million.

Sales grew to €2.24 billion from €1.83 billion in the prior-year quarter. Lanxess said it implemented price increases in all segments in order to fully pass on higher raw material costs. In addition, there was volume growth and positive portfolio effects from recent acquisitions, above all the EPDM rubber business DSM Elastomers. Sales grew despite negative currency effects at minus 7% mainly due to a weak U.S. dollar.

"Demand for our products remains strong and plants are running at very high capacity utilization rates," said CEO Axel Heitmann. "Against this background and the strong first half of the year, we are lifting our full-year earnings guidance."

EBITDA pre exceptionals is now expected to grow about 20% year-on-year compared to €918 million in 2010. Earlier, EBITDA pre exceptionals were expected to grow 10-15%.