Lanxess increases 2008 earnings forecast
13/11/2008
Specialty chemicals company Lanxess AG has continued on its path of growth and is increasing its earnings forecast for the full year 2008.
The company now expects turnover to be between EUR 710 million and EUR 730 million. Axel Heitmann, chairman of the board of management of Lanxess said a "very successful" third quarter had prompted the company to raise its forecast.
The operating result in the third quarter rose by 9.1% against the same period of last year, to EUR 191 million. Sales improved by 6.4% to EUR 1.8 billion. Adjusted to reflect for portfolio and currency effects, Lanxess recorded strong operational sales growth of 13.6%.
All segments grew sales in the third quarter. Throughout the group, the increases in raw material and energy costs were passed on to the market through selling price increases. Operational sales rose in all regions.
For the remainder of 2008, Lanxess expects the financial market crisis to continue to impact the real economy, resulting in a weaker overall economic climate for the remainder of fiscal 2008. The economic prospects for North America and western Europe will continue to deteriorate. There should be a moderate stimulus to growth in Asia-Pacific, central and eastern Europe and Latin America. However, the global decline in consumer spending is likely to have a dampening effect on these economies as well.
“In certain fields Lanxess is already feeling the challenges presented by a steadily weakening economy and is countering this development by actively managing capacity usage and continuing to systematically implement efficiency measures,” commented Mr Heitmann.
Lanxess expects energy costs to continue to rise in the fourth quarter of 2008, while raw material costs are anticipated to decline at the beginning of 2009. As in the past, Lanxess will provide an outlook for the new fiscal year when its annual report is published in spring 2009.
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