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

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

Ferro sells another piece of its plastics business

December 19, 2014 3:33 pm ET

Ferro Corp. has sold its North American polymer additives business to a private equity firm for $154 million in cash.    More

Image

Antimicrobial polymers firm TiFiber launching pilot production in Ark.

December 19, 2014 10:58 am ET

TiFiber Inc., which makes synthetic compounds to control dangerous microorganisms, will locate a pilot production facility and its future company...    More

Image

Patel named LyondellBasell CEO

December 19, 2014 9:56 am ET

Bhavesh V. “Bob” Patel has been named CEO of Houston-based polyolefins producer LyondellBasell Industries NV, effective Jan. 12.    More

Image

Momentive to get a new name in January

December 19, 2014 9:45 am ET

Momentive Specialty Chemicals Inc. will change its name to Hexion Inc., effective Jan. 15.    More

Image

Thailand's SCG Chemicals buying Norwegian chemical firm Norner

December 19, 2014 9:11 am ET

Thailand's SCG Chemicals Co. Ltd. has announced it has acquired 51 percent of the shares in the independent petrochemical company Norner Holding AS fr...    More

Market Reports

Flexible Packaging Trends in North America

Our latest RESEARCH report examines trends in FLEXIBLE PACKAGING impacting the North American market including a review of economic conditions, key drivers of growth, materials pricing, M&A activity, sustainability challenges and the outlook for 2015.

Learn more

Plastics in Brazil - State of the Industry Report

This in-depth report examines the Brazilian plastics industry from a historical and geographical context. Our analysts provide insight on economic trends and forecasts, growing manufacturing sectors that utilize plastics, private investment opportunities, market environment challenges, and innovations in R&D.

Data tables and charts on producer prices, trade, plastics production and end market indicators is also included.

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

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

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

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

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events