Q2 demand for rubber drives Lanxess results higher

ERJ staff report (DS)

Leverkusen, Germany - Lanxess AG has lifted its full-year guidance for 2011 after achieving record results in the second quarter. The speciality chemicals company now expects EBITDA pre exceptionals to grow about 20 percent year-on-year after previously forecasting a growth of 10-15 percent.

EBITDA pre exceptionals in the second quarter rose 26 percent year-on-year to EUR 339 million. Sales increased by 23 percent year-on-year to EUR 2.2 billion. Lanxess 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 in the Performance Polymers segment rose 37 percent year-on-year to EUR 1.3 billion. Prices jumped 29 percent year-on-year to offset rising raw material costs, notably for butadiene and isobutylene. In addition, sales were driven by volume growth and a contribution of about EUR 80 million from the acquired EPDM rubber business. EBITDA pre exceptionals rose 40 percent to EUR 229 million in the second quarter, with the company's synthetic rubber and high-tech plastics businesses profiting from growth in the tire and automotive industries.

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Press release from Lanxess