Lanxess has tightened its profits forecast for this year following a 23.3% rise in second quarter EBITDA pre exceptionals to ˆ201m and a 77% leap in net profits to ˆ127m. With a four phase restructuring programme running ahead of schedule the Bayer spin-off company now predicts a full year EBITDA, pre exceptionals, of between ˆ660 and 680m; previously the forecast had been for the range ˆ640 to 680m.
The company’s Engineering Plastics segment saw EBITDA more than double from ˆ14m to ˆ24m for the quarter, thanks in part to the sale of the loss making Fibers business. Lanxess’s Performance Rubber division saw sales rise by 3.7% over the previous year’s corresponding quarter, but EBITDA pre exceptionals fell by 11.4% to ˆ62m (ˆ70m). Nevertheless, the company’ notes in this morning’s statement, the segment still turned in one of its best results since the Lanxess group was formed.
Chairman Axel Heitmann said the improved figures reflected the focus on higher margin business and the impact of its corporate reorganisation. The company now forecasts overall savings from its restructuring of ˆ260m a year by 2009.
