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    Home > Chemicals Industry > Rubber Plastic News > Significant growth in sales and revenue: LANXESS raises its fiscal 2021 forecast again

    Significant growth in sales and revenue: LANXESS raises its fiscal 2021 forecast again

    • Last Update: 2023-01-08
    • Source: Internet
    • Author: User
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    ●Full-year EBITDA guidance raised to EUR 1 billion to EUR 1.
    05 billion

    Sales in the second quarter increased by 27.
    5% to 1.
    831 billion euros

    Earnings before interest, tax, depreciation and amortization in the regular business area increased by 23.
    7% year-on-year to 277 million euros

    Continue to grow: Complete the acquisition of Emerald Kalama Chemical

    Shanghai, August 12, 2021 – LANXESS has once again raised its full-year 2021 forecast after a good second quarter
    .
    The specialty chemicals company expects earnings before interest, tax, depreciation and amortisation in the regular business range of 1 billion to 1.
    05 billion euros this year

    .
    This guidance target also reflects the acquisition of Emerald Kalama Chemical

    .
    The acquisition, which was completed in early August, could contribute to EBITDA of around 35 million euros for the remainder of 2021

    .
    Previously, Lanxess expected revenue of 950 million to 1 billion euros in 2021

    .

    Compared with the same period of the previous year, which was affected by the epidemic, LANXESS reported a significant increase in EBITDA in the second quarter: revenue increased from 224 million euros to 277 million euros, an increase of 23.
    7%

    .
    This positive development was driven by growing demand from the automotive industry, with the Engineering Materials business segment benefiting in particular

    .
    The consumer protection business segment was also strong, with revenues almost reaching the high levels of the previous year

    .
    By adjusting its selling prices, LANXESS has largely offset the sharp rise in raw material prices across its business segments

    .
    Currency effects (especially in the U.
    S.
    dollar), high freight rates and rising energy costs (especially in Germany) all had a negative impact on revenue

    .
    The EBITDA margin in the regular business area was 15.
    1%, slightly lower than the 15.
    6% in the same period last year

    .

    “Our business continued to perform well in the second quarter, with sales volumes returning to pre-pandemic levels, and we are confident in the second half of the year
    .
    With this momentum and the successful acquisition of Emerald Kalama Chemical, we are able to accelerate growth again , and raise the guidance target for the whole year,

    " said Chang Mutian, Chairman of the Board of Management of LANXESS Group
    .

    In the second quarter, LANXESS's sales rose 27.
    5 percent to 1.
    831 billion euros from 1.
    436 billion euros in the previous year

    .
    As expected, net income from continuing operations was significantly lower than the previous year's 803 million euros, at just 77 million euros

    .
    In the second quarter of 2020, LANXESS sold its stake in chemical park operator Currenta for a considerable gain

    .

    Acquisitions drive growth in Consumer Protection segment

    Last week, LANXESS just completed the second largest acquisition in its history
    .
    The acquisition of Emerald Kalama Chemical strengthens the specialty chemicals company's position in high-growth markets and opens up new high-margin applications, particularly in consumer protection, which include flavor and fragrance products and applications in food and beverage or Antiseptic for cleaning and cosmetic products

    .
    LANXESS expects to quickly complete the integration of the new business

    .
    The acquisition will contribute approximately EUR 35 million to LANXESS' annual results in fiscal 2021

    .

    Business Sector: Growing Demand Drives Revenue

    The High Quality Intermediates segment benefited from strong demand and correspondingly higher volumes
    .
    Thanks to higher selling prices, sales in this segment reached EUR 505 million, 17.
    4% higher than the previous year's EUR 430 million

    .
    EBITDA decreased by 6.
    8% from EUR 103 million to EUR 96 million due to higher energy and freight costs

    .
    In addition, revenue in the first quarter of the previous year also benefited from a positive price effect, as lower raw material prices did not have an immediate impact on the market

    .
    The profit before interest, tax, depreciation and amortization in the ordinary business area decreased correspondingly to 19.
    0% from 24.
    0% in the same period of the previous year

    .

    In the Specialty Additives business segment, the significantly higher performance reflects increasingly strong demand
    .
    Sales volumes have increased significantly, and raw material costs have also resulted in higher product prices than the previous year

    .
    Unfavorable exchange rate effects had a negative impact

    .
    Sales rose from 442 million euros to 568 million euros, an increase of 28.
    5%

    .
    Earnings before interest, tax, depreciation and amortization in the regular business area were 89 million euros, 48.
    3% higher than the 60 million euros in the same period of the previous year

    .
    The profit before interest, tax, depreciation and amortization in the regular business area increased from 13.
    6% to 15.
    7%

    .

    In the second quarter, both sales and revenue in the Consumer Protection business segment reached strong levels from the prior-year period
    .
    The continued good momentum of Saltigo's agrochemicals business and the high demand for disinfectants in the Material Protection Products business unit contributed to the increase in sales

    .
    After LANXESS acquired INTACE and Theseo, the businesses of these two companies also contributed positively

    .
    Unfavorable currency effects impacted sales and revenue

    .
    Sales rose from 301 million euros to 314 million euros, an increase of 4.
    3%

    .
    EBITDA in the regular business area was 65 million euros, 4.
    4% lower than the previous year's 68 million euros, due to higher energy and freight costs and price effects

    .
    The EBITDA margin in the ordinary business area reached 20.
    7%, compared with 22.
    6% in the previous year

    .

    The Engineering Materials business segment recorded a significant increase in sales, benefiting from increasingly strong demand from the automotive industry
    .
    Product prices are also higher than the same period last year, which was severely affected by the epidemic

    .
    The exchange rate showed negative growth

    .
    Sales in the second quarter increased by 73.
    8% from 244 million euros to 424 million euros

    .
    Despite higher freight and energy costs and the absence of a key supplier, EBITDA in the regular business area reached EUR 68 million, 142.
    9% higher than EUR 28 million in the same period last year

    .
    The profit before interest, tax, depreciation and amortization in the ordinary business area increased from 11.
    5% to 16.
    0%

    .

    *As of December 31, 2020

    **Number of employees employed in continuing operations as of reporting date

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