LANXESS sales growth of nearly 7% in the first quarter, approximately 2.6 billion euros
Still achieve optimal quarterly results under negative currency influence
Earnings, Taxes, Depreciation and Amortization (EBITDA) increased by 14% to 375 million euros in the regular business area
EBITDA (Eliminating Taxes and Amortization) Rate within the scope of regular operations 14.6%
Net profit increased by 23% to 96 million euros
2018 Outlook for the Year: EBITDA is expected to grow by 5% to 10% (€925 million) over the previous year in the conventional business scope of 'New LANXESS'.
Following the success of FY 2017, LANXESS, the specialty chemical company, announced its best quarterly results, and raised its profit forecast for fiscal year 2018.
In the first quarter of this year, global sales increased by nearly 7% to 2.565 billion euros compared to 2.101 billion euros in the same period last year. EBITDA in the conventional business range was significantly higher than the 328 million euros in the same period of last year. It rose by 14% to 375 million euros. The key factor of this strong performance included the contribution made by the Accademia Acquired in 2017. In addition, Phosphorus Chemicals, which was purchased from Solvay in February 2018, also made a major contribution. Negative currency effects dampened the positive performance of EBITDA. The EBITDA margin in the regular business range increased by nearly one percentage point from last year to 14.6%. Net profit increased significantly by 23% to 96 million euros. The 78 million euros in the same period last year increased significantly.
The chairman of LANXESS Group's management board, Chang Mutian, said: 'LANXESS is still on a steady growth track, has made a good start in the new fiscal year, and once again improved its profitability. This shows that we are pushing the company forward. Are gradually getting back. '
The LANXESS Group raised its expectations for the 2018 fiscal year and currently expects EBITDA to be within the “New LANXESS” business segment (only including high-quality intermediates, special additives, high-performance chemistry Products, engineering materials) will increase by 5% to 10%. Last year, comparable EBITDA was approximately 925 million Euros in the conventional business area. At the annual press conference held in March, Changmu Tian assumed that there will be a slight increase in performance this year. LANXESS and Aramco, Saudi Aramco’s joint venture in the field of synthetic rubber, were not included in the 2018 fiscal year forecast, but released a separate report from the second quarter.
Development of various business segments
The sales volume of the high-quality intermediate business segment reached 563 million euros in the first quarter of 2018, which was 8.7% higher than last year's 518 million euros. EBITDA in the regular business range was higher than last year's 91 million euros. 12.1%, reaching 102 million euros, largely due to adjustments in sales prices. The EBITDA rate in the regular business area reached 18.1%, compared with 17.6% in the same period of last year.
The special additives business segment, with total sales of 496 million euros, was more than double the 239 million euros in the same period last year. The EBITDA of the regular business range reached 81 million euros, 44 million compared to the same period last year. The euro increased by 84.1%. This strong earnings result was mainly the result of the acquisition of the company's merger business. The EBITDA margin was 16.3% in the regular business area, which was lower than the previous year. 18.4%.
In the high-performance chemicals business segment, sales in the first quarter of 2018 fell by 8.7% to 336 million euros, compared with 368 million euros in the same period of last year. EBITDA totaled 52 million euros in the regular business area. This was a decrease of 11.9% from Euro 59 million in the same period of last year. In particular, the negative currency and the divestment of the chlorine dioxide business have reduced sales and revenue. EBITDA in the conventional business area 15.5%, 16.0% over the same period last year.
Sales of the engineering materials business segment increased significantly by 24.8% to 393 million euros, compared to 315 million euros in the same period of last year. EBITDA increased substantially by more than 50% to 7300 in the regular business area. Ten thousand euros, which was 48 million euros in the same period of last year. The increase in revenue was due to higher sales prices, the contribution of the polyurethane business last year, and higher capacity utilization. EBITDA) rate is much higher than 15.2% in the same period last year.
Sales of the Arang Shinco segment were 757 million euros, a decrease of 20.1% compared to 948 million euros in the same period of last year. EBITDA in the regular business range decreased by 22.9% to 111 million euros. , compared with 144 million euros in the same period of last year. Affected by negative currency to a large extent. The previous year was mainly due to adverse currency effects. The EBITDA rate reached 14.7 in the regular business area. %, compared to 15.2% in the same period last year.