Leather unit boosts results at Lanxess
German chemical company Lanxess AG has reported its strongest ever third quarter results as adjusted sales rose 6% to reach €1,705 million, up from €1,691 million in the same period of 2006, whilst prices increased 1.6% and volumes improved 4.4%.
On a geographical basis sales rose 5.3% in Germany; 0.8% in the EMEA region (Europe [excluding Germany], Middle East, Africa), boosted by strong growth in eastern European markets; and by 2.2% in the Asia-Pacific region, where China produced double-digit growth. Although the Americas saw sales slip 4% year-on-year, after currency adjustment sales improved 8.1%.
The company produced a solid performance in its Performance Chemicals segment and although sales decreased 6.6% to €493 million due to the divestment of its Textile Processing Chemicals business unit and negative currency effects, they rose 3.4% after adjustment for these factors. Most of this improvement came from the Leather, Rhein Chemie, Rubber Chemicals and Ion Exchange Resins business units.
Commenting on the results chairman, Axel Heitmann, said, “That is our strongest third quarter yet and provides a basis for further sustained growth.”
The company expects global economic growth to continue in the fourth quarter supported by robust demand in Asia-Pacific and Latin America, coupled with a stable business environment in Europe.
