Elastomers and rubber lead to Lanxess impairment cha - leatherbiz: Lea Leatherbiz

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Elastomers and rubber lead to Lanxess impairment charges

26/02/2014
Specialty chemicals company Lanxess has announced impairment charges of EUR 257 million in the fourth quarter of 2013, which will affect its full-year results, to be published on March 20.

In a statement, Lanxess explained that a review of business units making elastomers and rubber has thrown up expectations of overcapacity and high raw-material and energy costs in those areas, suggesting that these parts of the company may now have a lower value than previously calculated and are unlikely to recover the book value. Correcting these values now has led to the impairment charges.

While the EUR 257 million is not “cash relevant”, Lanxess said, it confirmed that the charge will affect its annual results for 2013. This, with exceptional expenses of about EUR 30 million, brought forward as part of an ongoing efficiency programme, will result in “negative net income” for the year. The full-year net loss for 2013 is expected to be EUR 159 million.

The company said it expects sales for the full year to be EUR 8.3 billion, a decline of 8.7% compared to the figure for 2012.


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Rubber division drags Lanxess’ results down 21/03/2014

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