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Lanxess AG, the Germany-based rubber and thermoplastics group, has announced its full year results for 2013 reporting sales dropped by 9 percent from 2012.
The Cologne-based company says sales fell from 9.1 billion euros ($12.4 billion) in 2012 to 8.3 billion euros ($11.4 billion) in 2013. Earnings before interest, taxes, depreciation and amortization declined by 40 percent to 735 million euros ($1 billion) from 1.2 billion euros ($1.6 billion).
Sales in the performance polymers segment of the business declined by around 13 percent to about 4.5 billion euros ($6.2 billion), but volumes increased by around 4 percent, due in part, the company reports, to capacity expansions in the butyl rubber and high performance materials units.
"Behind us lies a challenging year," said Bernhard Duettmann, chief financial officer of Lanxess. "Negative effects were the volatile raw material prices and increasing competition, especially in the synthetic rubber business."
Sales in Europe (excluding Germany), the Middle East and Africa decreased by around 5 percent to 2.4 billion euros ($3.3 billion) from 2012 to 2013, but Lanxess says these region's share of group sales increased to 29.
In North America, sales fell about 17 percent to 1.3 billion euros ($1.8 billion). North American sales made up 16 percent of all Lanxess sales.
Meanwhile in Germany, Lanxess posted sales of around 1.5 billion euros ($1.8 billion) almost 8 percent below 2012’s figure with the country accounting for 17 percent of sales.
Lanxess says that in 2014 it anticipates a slight improvement in EBITDA pre exceptionals, due to the absence of one-time items, even if selling prices stay at low levels.