LEVERKUSEN, Germany (May 9) — Lanxess A.G.´s performance rubber segment reported 3-percent higher sales in the first quarter, while earnings were on par with those of a year ago.
Overall, Lanxess reported improved earnings despite lower sales.
The performance rubber segment reported pre-tax operating earnings of $94.5 million on sales of nearly $609 million as business expanded throughout the Asia-Pacific region to offset weak conditions in North America, the company said.
Lanxess said it was able to compensate increased petrochemical feedstock costs with higher selling prices. The earnings/sales ratio of 15.5 percent was level with a year ago, Lanxess said.
In the performance chemicals segment, Lanxess said prices and volumes of rubber chemicals declined due to heightened competition
For the remainder of fiscal 2006, Lanxess said it remains optimistic based on the positive economic perspectives in Europe and Asia. Raw material and energy prices are expected to remain volatile at a high level in the coming months, the firm said.