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Lanxess reports successful year in 2016
FINANCIALS
from 14.1% in 2015. In 4Q 2016, Songwon’s EBITDA rose by 16.1% to KRW24.5 billion and the margin increased to 15.2%. The company reported stable production at high utilization rates throughout the year, and also successfully implemented a capacity expansion at its Maeam plant in South Korea. Songwon says it continued to drive organic growth across all of its business areas during 2016 by further leveraging its industry expertise and bringing new innovations to the market. Contact: Songwon Industrial Co, Ltd, Ulsan, Korea. Tel: +82 522 739 841, Web: www.songwon.com
Lanxess reports successful year in 2016
I
n the 12 months to 31 December 2016, German speciality chemicals company Lanxess reported net income of €192 million, a substantial year-onyear increase of 16.4% from 2015’s net income of €165 million. Annual sales declined by 2.6%, from €7.9 billion in 2015 to €7.7 billion last year, primarily due to the adjustment in selling prices to reflect lower raw material costs. In 4Q 2016, the company posted sales of €1.9 billion, up 6% year on year, and net income of €2 million compared with €15 million in 4Q 2015. The company places particular weight on EBITDA data. In 2016, EBITDA pre-exceptionals increased by 12.4% to €995 million, compared with €885 million a year earlier. The main drivers of this positive development were higher volumes in all segments, the associated increase in capacity utilization and cost savings resulting from the improved competitiveness of plants and processes, Lanxess reports. EBITDA pre-exceptionals was therefore at the upper end of the company’s recent guidance range of €960 million to €1 billion. The group’s EBITDA margin pre-exceptionals improved from 11.2% to 12.9% in 2016. In 4Q 2016, EBITDA pre-exceptionals improved by 21.2% to €183
May 2017
million. The company continued the realignment of its portfolio in 2016 and made several important strategic decisions, including the on-going acquisition of US flame retardant and lubricant additives company Chemtura [ADPO, November 2016], which will strengthen its position in high-margin speciality chemicals markets. The acquisition is proceeding on schedule and is expected to close by mid-2017, Lanxess says. ‘We have achieved key milestones in our reorganization to make Lanxess a more stable and profitable enterprise and we have progressed a good way on our course of growth. This is reflected in our very positive business data for 2016’, comments Matthias Zachert, chairman of the Lanxess board. The company aims to continue on this growth path, above all through the planned acquisition of Chemtura, and to further increase its operational strength, he adds. Looking in more detail at business developments in Lanxess’ segments, sales in the Performance Chemicals segment improved by 2.7%, from €2.09 billion in 2015 to €2.14 billion last year. The segment’s EBITDA pre-exceptionals was €374 million, up a substantial 14.7% from €326 million a year earlier. This improvement in earnings was mainly attributable to strong volume growth and better capacity utilization, the company says. The EBITDA margin pre-exceptionals improved accordingly to 17.5%, compared with 15.6% in 2015. This segment houses the firm’s Rhein Chemie Additives business, which should see sales triple once the incoming Chemtura business is integrated. The Advanced Intermediates segment achieved 2016 sales of €1.74 billion, down 4.6% year on year. EBITDA preexceptionals decreased by 3.8% to €326 million but the margin was up slightly to 18.7%. In the High Performance Materials segment, sales declined by 2.7% to €1.06 billion in 2016. However, EBITDA pre-exceptionals was up 43% to €159 million. Sales in the Arlanxeo synthetic rubber segment decreased by 5.2% to €2.71 billion, while EBITDA preexceptionals was down 4.6% to €373 million. Contact: Lanxess AG, Cologne, Germany. Tel: +49 221 8885 0, Web: www.lanxess.com
Additives for Polymers
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from 14.1% in 2015. In 4Q 2016, Songwon’s EBITDA rose by 16.1% to KRW24.5 billion and the margin increased to 15.2%. The company reported stable production at high utilization rates throughout the year, and also successfully implemented a capacity expansion at its Maeam plant in South Korea. Songwon says it continued to drive organic growth across all of its business areas during 2016 by further leveraging its industry expertise and bringing new innovations to the market. Contact: Songwon Industrial Co, Ltd, Ulsan, Korea. Tel: +82 522 739 841, Web: www.songwon.com
Lanxess reports successful year in 2016
I
n the 12 months to 31 December 2016, German speciality chemicals company Lanxess reported net income of €192 million, a substantial year-onyear increase of 16.4% from 2015’s net income of €165 million. Annual sales declined by 2.6%, from €7.9 billion in 2015 to €7.7 billion last year, primarily due to the adjustment in selling prices to reflect lower raw material costs. In 4Q 2016, the company posted sales of €1.9 billion, up 6% year on year, and net income of €2 million compared with €15 million in 4Q 2015. The company places particular weight on EBITDA data. In 2016, EBITDA pre-exceptionals increased by 12.4% to €995 million, compared with €885 million a year earlier. The main drivers of this positive development were higher volumes in all segments, the associated increase in capacity utilization and cost savings resulting from the improved competitiveness of plants and processes, Lanxess reports. EBITDA pre-exceptionals was therefore at the upper end of the company’s recent guidance range of €960 million to €1 billion. The group’s EBITDA margin pre-exceptionals improved from 11.2% to 12.9% in 2016. In 4Q 2016, EBITDA pre-exceptionals improved by 21.2% to €183
May 2017
million. The company continued the realignment of its portfolio in 2016 and made several important strategic decisions, including the on-going acquisition of US flame retardant and lubricant additives company Chemtura [ADPO, November 2016], which will strengthen its position in high-margin speciality chemicals markets. The acquisition is proceeding on schedule and is expected to close by mid-2017, Lanxess says. ‘We have achieved key milestones in our reorganization to make Lanxess a more stable and profitable enterprise and we have progressed a good way on our course of growth. This is reflected in our very positive business data for 2016’, comments Matthias Zachert, chairman of the Lanxess board. The company aims to continue on this growth path, above all through the planned acquisition of Chemtura, and to further increase its operational strength, he adds. Looking in more detail at business developments in Lanxess’ segments, sales in the Performance Chemicals segment improved by 2.7%, from €2.09 billion in 2015 to €2.14 billion last year. The segment’s EBITDA pre-exceptionals was €374 million, up a substantial 14.7% from €326 million a year earlier. This improvement in earnings was mainly attributable to strong volume growth and better capacity utilization, the company says. The EBITDA margin pre-exceptionals improved accordingly to 17.5%, compared with 15.6% in 2015. This segment houses the firm’s Rhein Chemie Additives business, which should see sales triple once the incoming Chemtura business is integrated. The Advanced Intermediates segment achieved 2016 sales of €1.74 billion, down 4.6% year on year. EBITDA preexceptionals decreased by 3.8% to €326 million but the margin was up slightly to 18.7%. In the High Performance Materials segment, sales declined by 2.7% to €1.06 billion in 2016. However, EBITDA pre-exceptionals was up 43% to €159 million. Sales in the Arlanxeo synthetic rubber segment decreased by 5.2% to €2.71 billion, while EBITDA preexceptionals was down 4.6% to €373 million. Contact: Lanxess AG, Cologne, Germany. Tel: +49 221 8885 0, Web: www.lanxess.com
Additives for Polymers
11