Lanxess Upbeat On 2011 On Strong Car Market
Lanxess published a consensus-beating 2011 outlook after robust demand for synthetic rubber in the auto and tire industries boosted its business in the first quarter.
The world's largest maker of rubber und rubber chemicals said on Wednesday it expects its adjusted earnings before interest, tax, depreciation and amortization (EBITDA) to grow by 10-15%, more than the average analyst estimate of 9.1% in a Reuters poll. In the first quarter, adjusted EBITDA jumped 38% to €322 million, which was better than the consensus of €294 million, and business has been good since then, too.
"We have enjoyed a strong start to the second quarter," Chief Executive Axel Heitmann said in a statement.
Continued demand for cars from China and a revival of the U.S. market as well as a recovery of the global truck market have lifted demand for tires.
French tire manufacturer Michelin in April said it would ramp up prices further as it posted a 28% rise in first-quarter sales, lifted by strong truck equipment demand.
Also last month, Goodyear Tire & Rubber of the U.S. reported a profit more than four times as high as Wall Street had expected on strength in its home market.
German tire and brakes maker Continental sees itself on track to meet 2011 targets after emerging markets fuelled consensus-busting quarterly sales and offset the pinch of soaring natural rubber prices.
