Lanxess Posts Record Results for Q1
Lanxess said it will exceed the €1 billion earnings before interest, tax, depreciation and amortization (EBITDA) pre-exceptionals mark in 2011 after achieving its best-ever quarterly result in the first quarter. EBITDA pre exceptionals rose 38% year-on-year to €322 million, with all segments and regions achieving double-digit growth.
Sales increased 29% year-on-year to €2.1 billion. This was due to higher volumes and price increases that helped offset rising raw material costs, in particular for butadiene, cyclohexane and benzene. EBITDA margin pre exceptionals rose to 15.5% in the first quarter from 14.4% a year earlier and net profit increased by 60% year-on-year to €166 million.
Net debt at the end of the first quarter 2011 only rose moderately to €937 million from €913 million from the end of 2010 despite increased net working capital needs in line with stronger business activity.
"In light of the current business environment, we remain confident for the rest of the year," said CEO Axel C. Heitmann. "We are well on track to achieve our target of €1.4 billion EBITDA pre exceptionals in 2015."
Lanxess also reported that its order books are well filled, and that the company is in the position to make large acquisitions.
Performance By Region
EMEA (Europe excluding Germany, Middle East, Africa) remained the largest sales region in the first quarter, with 31% of overall Group sales. The region also showed the strongest top-line growth, with sales increasing by 33% to €642 million. Russia, Hungary, Poland and Turkey achieved the strongest growth rates.
Sales in Germany rose 29% to €398 million in the first quarter and represented 19% of Group sales.
Sales in North America sales grew by 31% year-on-year to €328 million and represented 16% of Group sales in the first quarter.
Latin America increased sales by 25% year-on-year to €244 million in the first quarter due to the company's strong foothold in Brazil. The region represented 12% of Group sales.
Asia-Pacific increased sales by 23% year-on-year to €461 million in the first quarter, representing 22% of Group sales. China, India and South Korea showed the strongest relative sales growth in the first quarter.
Sales in the five BRICS countries (Brazil, Russia, India, China, South Africa) rose 25% year-on-year to €458 million and represented 22% of Group sales in the first quarter.
