LEVERKUSEN, Germany (Aug. 9, 2010)—Rubber and chemicals manufacturer Lanxess A.G. posted net earnings of about $173.5 million on sales of about $2.4 billion in the second quarter, big increases over the same period of 2009.
The company's earnings before interest, taxes, depreciation and amortization were about $356.3 in the quarter, up from $148.4 million a year earlier.
Net sales, up 48 percent from a year ago, rose because of higher volumes in key customer industries and positive currency effects from a weaker euro versus the U.S. dollar and Brazilian real, the Leverkusen-based firm said.
Lanxess also said the results for the period were better than expected because of its strategic positioning in emerging markets. Revenues from the BRIC countries – Brazil, China, India and Russia – represented about 23 percent of the company's total for the quarter, up from 21 percent in 2009 and 18 percent in 2008.
Axel Heitmann, chairman of Lanxess' board of management, said the strong results clearly underline the company's benefiting from its strategy to focus on premium products serving megatrends such as mobility in those emerging markets. The firm's top ten sales products in the quarter were from its synthetic rubber and high-tech plastic business units, which mainly serve the tire and automotive industries.
The positive financials resulted in Lanxess raising its earnings forecast for 2010. It now expects EBITDA pre-exceptionals of roughly $1.06 billion for the full year after previously forecasting between $860 million and $927 million in May 2010.