Upon releasing chemical manufacturer Lanxess AG’s financial results for the second quarter of 2010, the company’s Board of Management chairman Axel Heitmann commented on the 10 best-selling Lanxess products: “This list features eight rubber products from the Butyl Rubber and Performance Butadiene Rubbers business units for the manufacture of tires,” he stated.
This strong tire industry demand aided the company’s Performance Polymers segment in achieving sales of 958 million euros, a year-on-year increase of more than 71%, with volumes growing 28%. Heitmann reported that all four Performance Polymers business units (Butyl Rubber, Performance Butadiene Rubbers, Semi-Crystalline Products and Technical Rubber Products) registered “strong demand,” with capacity utilization continuing to increase and exceeding levels in the first three months of this year.
“In fact, some plants of the rubber business units have recently seen utilization rates above the group average of over 85%. For example, the Butyl Rubber business unit was again operating at full capacity,” Heitmann added.
EBITDA pre exceptionals in the Performance Polymers segment rose by 119 million euros to 171 million euros, with an EBITDA margin of 17.8%, compared with 9.3% a year ago.
In total, Lanxess achieved sales of 1.83 billion euros in the second quarter of 2010, representing a growth of 48% year-on-year. The company has more than doubled EBITDA pre exceptionals year-on-year to 269 million euros during the three-month period, and Lanxess notes that earnings were primarily driven by ongoing strong demand for synthetic rubber in Asia and notably Latin America. EBITDA margin pre exceptionals – another key performance indicator – rose to 14.7% from 9% a year ago. Net profit for the quarter was 131 million euros, as opposed to 17 million euros a year earlier. (Tyres & Accessories)