Germany-based producer of specialty chemicals Lanxess has once again posted a year-on-year increase in earnings (EBITDA pre exceptionals) in the first quarter. EBITDA pre exceptionals grew 6.8% to reach €219 million from €205 million in the same prior-year period.

Reported sales, after the effects of divestments and shifts in exchange rates, declined 6.8%, as had been expected, to €1,711 million compared with €1,836 million in the first quarter of 2006, however, adjusted for these effects, sales grew 3.1%. Net income improved 11% to €91 million from €82 million.

Due to portfolio changes and currency effects, first-quarter sales of the Performance Chemicals segment were 22.6% lower year-on-year, at €400 million. Adjusted for currency effects and the divestment of the Paper and Textile Processing Chemicals business units, sales were flat with the previous year. The Leather business unit boosted volumes of chrome ore and chromic acids.

The company remains optimistic about the rest of the year as economic perspectives are positive in Germany and elsewhere in Europe, as well as in Asia. The pace of economic growth in the United States is expected to slacken, with a corresponding effect on the group’s business.