- Ebitda ex-items expected to be EU860 million to EU900 million
- Chemical maker to accelerate savings, become less cyclical
Lanxess AG, which is undergoing its biggest reorganization since Bayer AG carved out the chemical maker 10 years ago, raised its full-year profit forecast after quarterly earnings beat estimates and it accelerated a savings program.
Earnings before interest, taxes, depreciation, amortization and one-time expenses is expected to be 860 million euros ($934 million) to 900 million euros, the Cologne, Germany-based company said Thursday. Previously, Lanxess had predicted 840 million euros to 880 million euros.
After agreeing to a joint venture with Saudi Arabian Oil Co. to secure raw materials for a synthetic rubber unit, Chief Executive Officer Matthias Zachert is now turning his attention to growing the remaining divisions such as agrochemicals, pigments and water treatment chemicals. A cost savings program is yielding annual savings of 150 million euros a year earlier than expected, Lanxess said today.
“Now that we have solved the main structural problems, we can once again concentrate on growth,” Zachert said in the statement Thursday. “Lanxess will be a more profitable and less cyclical specialty chemicals company with a balanced portfolio of quality products and with growth potential.”
Ebitda before one-time items rose 12 percent to 235 million euros in the third quarter. Analysts had predicted 230 million euros, according to a Bloomberg survey.