Lanxess sales drop; realignment on horizon

Chris Sweeney
RUBBER & PLASTICS NEWS

Published: May 9, 2014 11:40 am ET
Updated: May 9, 2014 11:50 am ET

Image By: Lanxess AG Lanxess CEO Matthias Zachert

Related to this story

Topics Materials Materials Suppliers
Companies & Associations

Lanxess AG reported a 2.5 percent decrease in sales for the first quarter of 2014 and net income that held steady compared to 2013.

The Cologne, Germany-based firm's sales came in at about $2.78 billion, with its net income about $34.8 million.

CEO Matthias Zachert said Lanxess is developing measures to realign itself, which will include streamlining its decision-making process and optimizing administrative structures.

“We must become significantly more competitive and profitable again,” Zachert said. “The focus will therefore be on the business portfolio, our business units, the efficiency of our administration and our production sites.”

Lanxess said the personnel adjustments initiated last year as part of its advance efficiency program have been completed in line with expectations.

The program included savings of $135.3 million by 2015 and beyond by eliminating 1,000 jobs worldwide. Lanxess said in an earlier release that approximately 730 employees have accepted voluntary layoffs by the end of 2015, accepting either early retirement or severance packages. Approximately $151.5 million of the estimated $206.5 million in exceptional charges budgeted for the program were incurred in 2013.

The firm said the encouraging increase in volumes throughout all business segments did not offset the drop in selling prices and negative currency effects.

“The first quarter was characterized by a persistently challenging market environment for synthetic rubber,” Zachert said. “The agrochemicals business, however, continued to develop well. Positive impetus also came from the construction industry.”

Sales in the performance polymers segment declined by 6.3 percent, to about $1.53 million. Its advanced intermediates segment’s sales dropped 3.2 percent to about $583 million. Lanxess’ performance chemicals segment’s sales increased by 5.8 percent to about $765.3 million.

Lanxess said it anticipates the economic environment will continue to recover slowly during the remainder of the year, but it said it believes the challenging competitive environment for its synthetic rubber businesses will continue because of persisting price pressure.

Lanxess is a special chemicals producer that reported sales of about $11.5 billion in 2013 and operates 52 production sites worldwide. It employs about 17,000 in 31 countries.


Comments

Lanxess sales drop; realignment on horizon

Chris Sweeney
RUBBER & PLASTICS NEWS

Published: May 9, 2014 11:40 am ET
Updated: May 9, 2014 11:50 am ET

Post Your Comments


Back to story


More stories

Image

Dow Chemical to merge chlorine operations with Olin

March 27, 2015 12:43 pm ET

Dow Chemical Co. is combining a large part of its chlorine value chain with specialty chemicals and ammunition maker Olin Corp. to create a global...    More

Image

Eastman Chemical expanding Tritan co-polyester capacity

March 27, 2015 10:00 am ET

Eastman Chemical Co.'s Tritan-brand co-polyester business continues to grow, with 35 million pounds of capacity added late last year and a second...    More

Image

PolyOne's Patterson focused on keeping the momentum going

March 27, 2015 9:30 am ET

New PolyOne CEO Robert Patterson sees a lot of good things when he looks at his company, which ranks as North America's largest compounder and...    More

Image

Improvements to Radici's nylon line takes it into more applications

March 27, 2015 9:00 am ET

Radici Group, the Italian-headquartered materials firm, outlined the benefits of its Radilon and Radistrong nylon products at NPE 2015.    More

Sun Plastech, Plastics Color Corp. note major milestones at NPE

March 27, 2015 9:00 am ET

Sun Plastech Inc. and Plastics Color Corp. — two well-known materials firms — are marking anniversaries at NPE 2015.    More

Market Reports

Flexible Packaging Trends in North America

North America represents about 30 percent of the global consumption of flexible packaging. Annual growth in this region is forecast at 4 percent during the next 5 years.

For more insight on growth opportunities, drivers of growth and the outlook for 2015, download this report.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events