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Lanxess posts strong growth in Greater China

By: Nina Ying Sun

August 13, 2012

LEVERKUSEN, GERMANY (Aug. 13, 1:50 p.m. ET) — Lanxess AG reported second quarter sales of 300 million euros ($370.5 million) in Greater China, showing a 31 percent year-on-year increase. During the same time period, the company achieved 8.1 percent sales growth globally, 24 percent in Asia and 14 percent in the five BRIC countries.

Martin Kraemer, CEO of Lanxess Greater China, said the company continues to benefit from the “mobility megatrend.” He said sustainable solutions were needed to master the challenges associated with this trend, such as the growing burden on the environment. It has declared “Green Mobility” – meaning eco-friendly mobility – its key theme for 2012.

The Leverkusen-based company is organizing Mobility Day China in Shanghai on Sept. 6, expecting to share ideas and explore sustainable solutions with 300 participants from industry, academia and associations.

Lanxess generated 563 million euros ($695 million)  in sales in Greater China during the first half of this year.

Globally, second quarter sales increased 8.1 percent to 2.42 billion euros ($2.99 billion), EBITDA pre exceptionals rose 6.8 percent to 362 million euros ($448 million), but net income declined by 2.8 percent 176 million euros ($217 million), due to reorganization measures in the Performance Chemicals segment, the company said in a news release.

The company owes second quarter sales growth to currency variations and price increases. Even after adjusting exchange-rate effects and portfolio changes, China growth reached 19 percent.

For the second half of 2012, Lanxess CEO Axel C. Heitmann said he expects the operating results to be “at the prior-year level” with moderate growth from Asia and Latin America.