Lanxess focus on “green-mobility”24 September 2012
Lanxess have announced a new mid-term goal for their leading earnings indicator – EBITDA pre-exceptionals of €1.8 billion in 2018. The specialty chemicals company is strategically well-positioned to continue on its established growth path and plans to achieve its previously established goal of €1.4 billion EBITDA pre-exceptionals in 2014, a year ahead of schedule.
The company has increased its key performance indicator by an average of 20% annually since 2004. For 2012, the company reconfirmed its guidance for EBITDA pre-exceptionals to increase by 5 to 10% year-on-year.
“We have transformed Lanxess into a growth company,” said Axel C. Heitmann, Chairman of the Board of Management of Lanxess, at the group’s Media Day in New York City. “In order to achieve our new mid-term goal, we will stick to our proven dual-track strategy of organic and external growth.”
The focus on emerging, high-growth markets will remain essential to Lanxess’ long-term growth. Since 2005, the company has grown by nearly 70% in the Asia-Pacific region, and by almost 40% in North and Latin America combined.
As Lanxess’ premium product strategy remains at the forefront of its growth, it will continue to focus on the same four key megatrends: mobility, urbanisation, agriculture and water.
“Green Mobility” as growth driver
With regard to the global demand for more sustainable mobility, Lanxess serves its customers with lightweight materials for use in automobiles, both of which contribute to significant reductions in fuel consumption and emissions. This includes a new range of lightweight chemicals for automotive leather.
“Our strength in ‘Green Mobility’ is reflected in our strong results,” said Heitmann.
Products related to “Green Mobility” accounted for 17% or €1.5 billion – of Lanxess’ total sales in 2011. In the first half of 2012, sales of these products rose by roughly 20% year-on-year at €878 million. The company aims to increase its total “Green Mobility” revenue to €2.7 billion in 2015.
“Our long-term financing, combined with forward-looking financial risk management, has provided us with sufficient liquidity to finance our working capital and business operations at all times,” said Lanxess Chief Financial Officer Bernhard Duettmann. “And it will continue to do so in the future.”
At the end of the second quarter of 2012, Lanxess had a liquidity reserve of more than €1.8 billion in liquid assets and undrawn credit facilities.
Rating agencies have taken a positive view of Lanxess’ liquidity position. Its BBB investment-grade ratings, maintained since 2007, are an indication of the company’s strong market positions and sound financial profile.
Lanxess have 14 business units including leather chemicals.
They will, as of January 1, 2013, expand its existing portfolio of 13 business units to 14. In a move that reflects the growing importance of its global ethylene propylene diene (EPDM) synthetic rubber business, the Technical Rubber Products (TRP) business unit will be split in two. Keltan Elastomers (KEL) will become a standalone business unit covering solely EPDM.
Lanxess are a leading specialty chemicals company with sales of €8.8 billion in 2011 and currently around 16,900 employees in 31 countries. The company is currently represented at 49 production sites worldwide. The core business of Lanxess is the development, manufacturing and marketing of plastics, rubber, intermediates and specialty chemicals. Lanxess is a member of the leading sustainable indices Dow Jones Sustainability Index (DJSI) World and FTSE4Good.