German specialty chemicals firm Lanxess reported a 55.6% year-on-year increase in its first-quarter net income on the back of higher selling prices, said the company.
Lanxess passed on the significantly increased raw material and energy costs in the first quarter via higher selling prices, the company said in a statement. Q1 EBITDA margin pre-exceptionals stood at to 13.2% , against 14.3% a year earlier.
The company expects EBITDA pre-exceptionals of between EUR280m and EUR350m in the second quarter. For the full year, Lanxess expects EBITDA pre-exceptionals to be "significantly higher than in the previous year".
"However, the guidance does not take into account potential further impacts of the war in Ukraine and the contribution of the acquisition of IFF’s Microbial Control business," the company said.
The transaction is expected to close in the third quarter, it added.
We remind, Lanxess officially opened a new EUR50m facility for engineering plastics at its site in Krefeld-Uerdingen.
The compounding plant will provide Durethan ployamide and Pocan polybutylene terephthalate, for use in the automotive and electronic industries, Lanxess said in a statement. Capacity details were not disclosed. The company added that it received support for the project from the North Rhine-Westphalia state government, but it did not provide details.
As per MRC, Lanxess said it was suspending its business activities in Russia due to the war in Ukraine. Thus, the company had “suspended business activities with Russian customers as far as contractually possible until further notice” and had suspended all investments in Russia. Its sales in Russia and Ukraine made up less than 1% of its global sales, it said.
Lanxess is a leading specialty chemicals company with about 19,200 employees in 25 countries. The company is currently represented at 74 production sites worldwide. The core business of Lanxess is the development, manufacturing and marketing of chemical intermediates, additives, specialty chemicals and plastics. Through Arlanxeo, the joint venture with Saudi Aramco, Lanxess is also a leading supplier of synthetic rubber.
mrchub.com