Following a modest start to 2014, Lanxess is currently developing measures to realign the company.
"We must become significantly more competitive and profitable again,” said Matthias Zachert, Lanxess’ Chairman of the Board of Management. "The focus will, therefore, be on the business portfolio, our business units, the efficiency of our administration and our production sites.”
Administrative structures are to be optimised and decision-making processes streamlined. Customer and market orientation in the business units are to be improved. The profitability of the sites will be analysed and consideration given to temporary or permanent shutdowns of plants. Lanxess will also explore options to make its rubber activities more competitive and to balance its business portfolio. Further details on the realignment of the company will most likely be provided during the second half of this year.
Q1 sales were down by 2.5% yr-on-yr to €2bn. The encouraging increase in volumes in all segments did not offset the drop in selling prices and negative currency effects. Net income for the reporting period came in at the prior-year level of €25M. Earnings/share were also level with yr-on-yr at €0.30.
Sales in the Asia Pacific region decreased by 6.4% to €496M. Asia Pacific’s share of Group sales fell to 24.3%, against 25.3% yr-on-yr.
The Performance Chemicals segment grew sales by 5.8% to €550M. Volumes expanded in all business units. Inorganic pigments and other products used in the construction industry benefited from the good demand attributable to the mild winter in Europe.
