Lanxess sales increase 7.4% in Q1
German specialty chemical company, Lanxess AG, has reported success in the first quarter of 2005. Sales advanced by 7.4% to €1,729 million compared with €1,610 million in the same period last year. The company attributed this rise to an increase in business in its Performance Rubber and Chemical Intermediates segments. Group net income for the first quarter came to €70 million, a strong improvement compared with the same period of 2004 (€26 million).
"We have had a satisfactory start to 2005," commented Lanxess CEO Axel Heitmann, "but as the year progresses we need to achieve further substantial improvements in earnings, and above all intensify our restructuring, to make Lanxess globally competitive for the long term.”
On the status of the negotiations with the employee representatives concerning the restructuring of the loss-making Styrenic Resins and Fine Chemicals units and the possible elimination of up to 1,200 jobs, Heitmann said: "Intensive discussions are currently ongoing. I still anticipate that we can bring them to a conclusion this quarter."
Sales in the EMEA (Europe, Middle East, Africa) region, excluding
Sales in the Performance Chemicals segment were on a par with the prior year, at €478 million, a slight decline in volumes being offset by price increases. The Textile Processing Chemicals business unit reported lower sales, especially in Europe and the
