Skip to main content
Sister Publication Links
  • European Rubber Journal
  • Plastics News
web
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • ITEC
    • Automotive
    • Tire
    • Non-Tire
    • Suppliers
    • Silicone
    • Latex
    • Coronavirus
    • Executive Action
    • Government/Legal
    • Opinion
    • Technical Notebooks
    • International Elastomer Show
    • Women in Tire & Rubber
    • HEXPOL Sponsored Content
    • Goodyear recognized by Lockheed Martin as 'elite supplier'
      EV tire advancements to help secure future
      Lambillotte: Only question on AVs is timing
      CAR official says EV future brighter than autonomous
    • Smithers webinars focus on performance materials in green tires
      Ford to close 3 plants, end production in Brazil, costing $4.1 billion
      Study: Vehicle buyers cling to familiarity amid pandemic
      Kumho launches commercial LT, performance tire lines
    • Smithers webinars focus on performance materials in green tires
      Ferentino Tyre opens Sri Lanka plant; eyes exports to U.S., Europe
      Kumho launches commercial LT, performance tire lines
      Taiwan tire makers propose settlement of import duties case
    • JobsOhio funding gives Sperry & Rice room to grow
      TRAC's Glenn Maidment caps 51-year rubber industry career
      LafargeHolcim looks to solidify U.S. presence with Firestone Building Products purchase
      Hankook Tire holding company adopts Hankook & Co. identity
    • Smithers webinars focus on performance materials in green tires
      Endurica earns prestigious Tibbetts Award from SBA
      Kuraray to raise elastomer prices again
      Synthomer optimistic, raises earnings forecast
    • Safic-Alcan extends distribution agreement with Momentive
      Momentive aims to grow silicone presence in Asia-Pacific region
      IRP Medical solidifies portfolio with KDL deal
      Rubber lab services firm Ace reports record year
    • ASTM cancels April meetings as COVID-19 continues impact
      Paycheck Protection Program funding reopens Jan. 15
      Detroit Auto Show canceled; alternative event being planned for September
      Top Glove reopens COVID-hit factories with enhanced precautions
    • Jack Murphy joins Akron Dispersions
      Adriano Alfani named Versalis CEO
      Maroon Group adds to Southeast sales team
      ASTM taps rubber executive as new board member
    • Paycheck Protection Program funding reopens Jan. 15
      Taiwan tire makers propose settlement of import duties case
      Lobbying group unveils policy agenda to speed transition to EVs
      NADA, bank group to assess political contributions after U.S. Capitol siege
    • Column: Pandemic looms over everything in life, business in 2020
      Column: Lessons from the 2020 Best Places to Work
      Editorial: Silicone hit hard by pandemic, expected to bounce back
      Column: Still far way from normal
    • Effects of multiple repurposed materials for reinforcements of standard rubber compounds
      Impact of peroxide blends on the cure rate and aged properties in HNBR
      Techniques to detect long chain branching in polymers
      A comparative study looking at effects of curing kinetics and batch variation on SBR injection molding and numerical analytics
    • WORD panelists say evolution, authenticity keys to success
      IEC keynote: Communication key to logistics
      IEC speaker: Specialized elastomers may reduce spread of life-threatening pathogens
      Rubber Division seeking abstracts for Spring Technical Meeting
    • WORD panelists say evolution, authenticity keys to success
      New video celebrates women in rubber industry
      ITEC panelists say women can thrive in tire industry
      Rubber Division planning second Women of Rubber event
    • Sponsored By HEXPOL Compounding
      Faster Access to Your Polymer Compounding Experts Around the World
      Sponsored By HEXPOL Compounding
      Take a walk thru a HEXPOL Lab
      Sponsored By HEXPOL Compounding
      HEXPOL offers a unique selection of High Performance Elastomers to match your application requirements
      Sponsored By HEXPOL Compounding
      It’s what you can’t see that makes the Difference at HEXPOL
  • Blogs
    • Products
    • Wacky World of Rubber
    • New Products: MonTech introduces 1,500 kN lab press
      New products: 3M introduces new durable, pliable medical adhesive
      New Products: Lanxess launches energy-efficient PU elastomer
      New Products: MonTech automates bale cutter for safety, productivity
    • Wacky World of Rubber: How Trelleborg, teens sealed a spot in the world record book
      Wacky World of Rubber: Of chicken and feet, but not chicken feet
      Wacky World of Rubber: Time to go mattress shopping
      Wacky World of Rubber: Because nothing says football like 'frunk' shrimp
  • Newsletters
    • Rubber in Automotive
    • Silicone News
    • Latex News
    • Sign Up for Newsletters
    • Smithers webinars focus on performance materials in green tires
      Ford to close 3 plants, end production in Brazil, costing $4.1 billion
      Study: Vehicle buyers cling to familiarity amid pandemic
      Kumho launches commercial LT, performance tire lines
    • Safic-Alcan extends distribution agreement with Momentive
      Momentive aims to grow silicone presence in Asia-Pacific region
      IRP Medical solidifies portfolio with KDL deal
      Rubber lab services firm Ace reports record year
    • Jack Murphy joins Akron Dispersions
      Synthomer optimistic, raises earnings forecast
      Top Glove reopens COVID-hit factories with enhanced precautions
      Malaysia electronics group to enter rubber gloves sector
  • Multimedia
    • Videos
    • Photo Galleries
  • Directory
  • Resources
    • Classifieds & Mold Mart
    • Sponsored Content
    • White Papers
    • Sponsored By HB Chemical
      The Company Behind the Inventory
      Sponsored By French Oil Mill Machinery
      Process Improvement, Cost Reduction with Custom Press Systems
    • Sponsored By Uncountable Inc.
      Cooper Standard deploys lab informatics platform to synchronize R&D
      Sponsored By Elkem
      LSR Select™: A solution to improve your financial impact in molding applications
      Sponsored By HEXPOL Compounding
      Peroxide Cureable Silicone Injection Molding
      Sponsored By HEXPOL Compounding
      Understanding and Selecting Performance Additives for Rubber Compounding
  • Data
  • Events
    • RPN Events
    • RPN Livestreams/Webinars
    • Industry Events
    • Past Events
    • ITEC Library
    • International Silicone Conference Library
    • 2021 Healthcare Elastomers Virtual Edition
      2021 Rubber in Automotive Virtual Edition
      2020 International Silicone Conference Virtual Edition
      2020 ITEC Virtual Edition
  • Advertise
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
September 01, 2015 02:00 AM

Lanxess initiates change for rubber business

Chris Sweeney
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Lanxess CEO Matthias Zachert

    COLOGNE, Germany—Lanxess A.G. revealed in its second quarter financials that it has initiated a process that will transfer its rubber business to a legally independent business entity within the Lanxess Group.

    The plan is for the new entity to comprise its Tire & Specialty Rubbers and High Performance Elastomers business units. The two combine to operate 20 production facilities with about 3,700 employees.

    A company spokesman said the creation of a legally independent business entity facilitates the reporting of key financial figures, such as sales or EBITDA (earnings before interest, taxes, depreciation and amortization), making it easier to bring the rubber business into a potential alliance.

    The process is part of Lanxess' three-phased realignment program, which CEO Matthias Zachert said is on schedule. The third phase is focused on improving the competitiveness of the business portfolio through potential alliances in the rubber business.

    Zachert said in an Aug. 6 news release detailing the firm's financials that Lanxess is “currently engaged in very constructive discussions and assumes that it will achieve concrete results in the course of the second half of the year.”

    Lanxess confirmed in the release that the first phase of realignment has been implemented successfully. It resulted in about 1,000 job cuts worldwide and the consolidation to 10 business units from 14. A recent development in the realignment included U.S.-based Rhein Chemie Corp. merging into Lanxess Corp.'s Rhein Chemie Additives unit, no longer operating as a separate legal entity, the firm said.

    Lanxess has initiated measures of the second phase, which involves the restructuring of its EPDM and neodymium-based performance butadiene rubber production, affecting about 140 employees worldwide. The firm will halt EPDM rubber production at its facility in Marl, Germany, and will realign its EPDM and Nd-PBR production to four strategic regional facilities.

    Financial results

    Lanxess reported increased sales and net income for the second quarter, causing it to increase its guidance for 2015. Sales improved by 4.3 percent to about $2.29 billion. The firm cited higher volumes and positive currency effects offsetting raw material induced lower selling prices.

    Net income also increased by 58.2 percent to about $94.7 million, thanks to operational development and proceeds from the sale of noncurrent assets.

    Lanxess projects its EBITDA pre-exceptionals to come in between about $914 million and $958 million compared to its original projection of about $893 million and $936 million.

    “Lanxess is returning more and more to the right course,” Zachert said. “In the second quarter of this year, we posted a very good operating result to which all segments of our company contributed. On the basis of these strong figures and the rapid implementation of our realignment program, we assume that our annual result will be higher than previously anticipated.”

    The spokesman said the firm's increase in EBITDA pre-exceptionals by 13 percent to about $299 million and a 4 percent savings in general administration expenses were examples of savings generated by its realignment.

    Segment results

    Higher volumes, positive currency effects and raw material induced lower prices helped its Performance Polymers segment achieve increased sales of 3.5 percent to about $1.2 billion.

    Lanxess cited good demand in almost all customer markets for the Advanced Intermediates segment, which resulted in increased sales of 3.1 percent to about $509 million.

    Its Performance Chemicals segment experienced a 6.8 percent increase in sales to about $601.9 million for the quarter.

    The company cited low raw material prices, positive currency effects and savings contributed to the increase.

    Lanxess is a specialty chemicals manufacturer that employs about 16,300 in 29 countries with 52 production sites worldwide. It reported 2014 sales of about $9.6 billion.

    Related Articles
    Lanxess to reveal rubber partner in November
    Lanxess integrates Rhein Chemie
    R.D. Abbott, Lanxess expand relationship
    R.D. Abbott, Lanxess expand relationship
    Lanxess to end EPDM production at Marl in 2016
    Brenntag to acquire Turkish specialty chemicals distributor
    Restructuring efforts paying off for Lanxess
    Lanxess CEO outlines strategy, financial improvement
    Letter
    to the
    Editor

    Rubber & Plastics News wants to hear from its readers. If you want to express your opinion on a story or issue, email your letter to Editor Bruce Meyer at [email protected].

    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Get our newsletters

    Staying current is easy with Rubber & Plastics News delivered straight to your inbox, free of charge.

    Subscribe Today

    Subscribe to Rubber & Plastics News to get the best coverage and leading insights in the industry.

    SUBSCRIBE
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter

    MISSION

    To serve companies in the global rubber product industry by delivering news, industry insights, opinions and technical information.

    web
    Contact Us

    2291 Riverfront Pkwy, Suite 1000
    Cuyahoga Falls,
    OH 44221

    Customer Service:
    877-320-1726

    Resources
    • About Us
    • Digital Edition
    • Contact the Staff
    • Advertise
    • Order Reprints
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Careers
    • Ad Choices Ad Choices
    • Sitemap
    Partner Sites
    • Tire Business
    • European Rubber Journal
    • Plastics News
    • Plastics News China
    • Urethanes Technology
    • Automotive News
    • Crain Brands
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • News
      • ITEC
      • Automotive
      • Tire
      • Non-Tire
      • Suppliers
      • Silicone
      • Latex
      • Coronavirus
      • Executive Action
      • Government/Legal
      • Opinion
      • Technical Notebooks
      • International Elastomer Show
      • Women in Tire & Rubber
      • HEXPOL Sponsored Content
    • Blogs
      • Products
      • Wacky World of Rubber
    • Newsletters
      • Rubber in Automotive
      • Silicone News
      • Latex News
      • Sign Up for Newsletters
    • Multimedia
      • Videos
      • Photo Galleries
    • Directory
    • Resources
      • Classifieds & Mold Mart
      • Sponsored Content
      • White Papers
    • Data
    • Events
      • RPN Events
      • RPN Livestreams/Webinars
      • Industry Events
      • Past Events
      • ITEC Library
      • International Silicone Conference Library
    • Advertise
    • DIGITAL EDITION