LANXESS
2021 core profit rises in line with guidance / Higher energy, logistics costs hit earnings / Significant growth expected in 2022 / Impact of war in Ukraine undetermined
CEO Matthias Zachert is in the middle of a major restructuring (Photo: Lanxess)
Sales at Lanxess (Cologne, Germany; www.lanxess.com) rose nearly four-fold to almost EUR 7.6 bn in 2021 as the chemical group successfully passed on higher energy and raw material costs to customers.

The company said all segments benefited from strong demand in the automotive, construction, transport, and manufacturing sectors.

Pre-exceptional EBITDA climbed 17.2% to EUR 1.0 bn to meet the company target (see Plasteurope.com of 11.11.2021). The pre-exceptional figures exclude the negative impact of one-time events such as unplanned shutdowns, forces majeures at suppliers, and the Currenta explosion (see PIEweb of 27.07.2021).

Net income from continuing operations sank markedly to from EUR 908 mn, which included proceeds from the Currenta divestment (see Plasteurope.com of 06.05.2020).

At the results press conference, the company headed by CEO Mathias Zachert discussed neither media reports about a planned purchase of DSM’s Materials unit nor Lanxess’ planned spin-off of its High Performance Materials unit (see Plasteurope.com of 31.01.2022). The latter business – which covers PA 6, polyamide compounds, and PBT – is part of the company’s Engineered Materials division, which also includes polyurethane. Operations here suffered an earnings decline in Q4 2021. EBITDA for the year advanced nearly 60% versus 2020, but it only climbed to EUR 241 mn, the same level as in fiscal 2019. Sales at the division rose almost 44% to EUR 1.7 bn thanks to rebounding demand in the auto industry sector.

The Specialty Additives segment benefited from the initial recovery in the aviation industry and good demand from construction, oil, and gas industries, the company said. Increases in raw material prices were successfully passed on, lifting sales 16.8% to EUR 2.3 bn. EBITDA pre-exceptional surged 16.2% to EUR 323 mn. The margin however was flat at 14.1%.

Lanxess forecast strong earnings growth in 2022 despite rising costs but warned that it was unable to gauge the impact of the war in Ukraine. First-quarter pre-exceptional EBITDA was projected at EUR 280-320 mn versus the previous year’s mark of EUR 242 mn. It said 2022 growth in Special Additives and Engineering Materials will be “significantly above” the prior-year level.
18.03.2022 Plasteurope.com [249891-0]
Published on 18.03.2022
Lanxess: Ergebnismarge sinkt 2021 weiterGerman version of this article...

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