Lanxess's realignment bolsters Q2 ebitda, as sales decline
Specialty chemicals manufacturer Lanxess has reported net income down 13.8 per cent to E75 million in the second quarter of 2016, on sales that decreased by 7.7 per cent to E1.94 billion.
The sales decline reflected that "higher volumes could not compensate for price reductions, or the slightly unfavourable currency effect of the dollar," the company said. Lower procurement prices for raw materials were passed on to customers during the quarter.
However, ebitda before exceptional items rose by 8.5 per cent to E293 million year-on-year, and pre-exceptional ebitda margin strengthened to 15.1 per cent, up from 12.8 per cent in 2015, after the company reorganised into segments covering advanced intermediaries, performance chemicals, and high performance materials.
"The strong operating result derived from increased volumes, leaner costs structures, and an improved product mix achieved by the new Lanxess segments," the company said.
Sales in the advanced intermediaries segment decreased by 5.3 per cent to E443 million; for performance chemicals were down by 1.8 per cent to E543 million; and high performance chemicals saw sales decline by 5.8 per cent to E275 million. The Arlanxeo segment reported sales down 14.1 per cent to E670 million.