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

Global Plastics Summit puts PE prices in the spotlight

October 1, 2014 3:17 pm ET

Product manufacturers may start to shift away from polyethylene because of high prices, according to two major plastics processors.    More

Image

Nucleation offers solution to shrinkage in HDPE closures

October 1, 2014 1:57 pm ET

For caps producers, nucleation can provide a practical solution to eliminate shrinkage variations in high density polyethylene beverage closures....    More

Image

Dow loses appeal in price fixing case

October 1, 2014 11:10 am ET

The Reuters press agency reports that a federal appeals court in Denver has rejected Dow Chemical Co.'s attempt to overturn a $1.06 billion fine...    More

Image

New Hexcel plant will supply carbon fiber for Airbus A350 XWB

September 30, 2014 2:43 pm ET

Hexcel Corp. is investing $250 million on a new carbon fiber plant in France, with part of the production going into the future Airbus SAS A350 XWB.    More

Image

LyondellBasell CEO Gallogly to retire

September 30, 2014 3:00 pm ET

James Gallogly, CEO of Houston-based polyolefins producer LyondellBasell Industries NV, on Sept. 29 announced plans to retire in 2015.    More

Market Reports

Plastics in Mexico - State of the Industry Report

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

Our industry analysis highlights macro industry trends and micro trends faced by companies that do business in Mexico. The report also provides key industry statistics and forecasts to anticipate future industry expansion.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

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

More Events