Germany-based chemicals company Lanxess AG has reported a successful year in 2006, posting a substantial rise in earnings and, according to its chairman
Axel Heitmann, closing the gap on its international competitors.
Earnings (EBITDA pre exceptionals) improved 16.2% to €675 million, at the top end of 2006 guidance, whilst operating results (EBIT) advanced to €376 million. The positive trend was also reflected in net earnings, which reached €197 million, compared with a €63 million net loss in the previous year.

Sales declined 2.9% to €6.94 billion, which had been forecast as a result of portfolio changes and adverse currency effects, however, adjusted sales including the divestment of the company’s Fibers and Paper business units and RheinChemie subsidiary iSL as well as the adverse shifts in exchange rates, sales increased 1.2%.

Due to portfolio changes sales at its Performance Chemicals segment declined 8.3% to €1.81 billion, however, if adjusted for the divestment of the Paper business unit and the RheinChemie subsidiary iSL, sales edged up 1.7%. In all business units except Rubber Chemicals, prices were raised or maintained at the previous year’s level. Sales of the Material Protection Products and Leather business units developed well as EBITDA pre exceptionals rose 3.8% from the previous year, to €220 million from €212 million in the prior year.

For 2007 Lanxess anticipates a stable economic environment and expects operating performance to improve, with moderate sales growth expected.