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Organic growth to dominate for Lanxess

15/09/2010
Specialty chemicals company Lanxess has announced a goal to increase its leading earnings indicator by roughly 80% over the next five years. The company is aiming to achieve gross earnings of approximately EUR 1.4 billion in 2015 and has confirmed its earnings forecast of roughly EUR 800 million in 2010. It plans to achieve its mid-term earnings target through a dual-track growth strategy of organic and external growth. Organic growth will play the more dominant role.

“We are poised to enter a new era of growth and have set an ambitious target, which we can achieve based on the strategic position of our business portfolio,” said chief executive, Axel Heitmann, at the a press conference in Düsseldorf. “Our track record reflects our operational strength. By the end of this year, we will have increased earnings before tax, pre exceptionals, by roughly 80% since 2004, in spite of the global economic crisis.”

Lanxess said its businesses benefit from their focus on “premium products serving the four megatrends of mobility, agriculture, urbanisation and water”. The company’s strategy for fast developing economies in Brazil, Russia, India and China (BRIC) and the expected growth of its leading customer industries will help each of its businesses to generate an earnings compound annual growth rate of at least 5% through 2015, it said. The percentage of group sales in the four BRIC countries has more than doubled in the last five years.


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