Highlights Q1 2014
Change of leadership on LANXESS Board of Management
In January 2014, the Supervisory Board of LANXESS AG resolved to end, by mutual agreement, the appointment of Dr. Axel C. Heitmann as Member and Chairman of the Board of Management of LANXESS AG. The Supervisory Board appointed Matthias Zachert, former Chief Financial Officer of LANXESS and most recently Chief Financial Officer of Merck KGaA, to succeed him effective April 1, 2014.
Perlon-Monofil sold to the Serafin Group
As part of its efficiency improvement program, LANXESS divested its wholly owned subsidiary Perlon-Monofil to the Munich-based Serafin Group in March. It was agreed not to disclose the purchase price. Perlon-Monofil GmbH is a global leader in the production of polyamide and polyester monofilaments, which are mainly used in paper manufacturing, shipping and agriculture. Perlon-Monofil employs approximately 100 people and had sales of about €30 million in 2013. Serafin, through its affiliate Nextrusion, already holds a strong position in the monofilaments industry and offers Perlon-Monofil new opportunities for its future development.
LANXESS publishes results for fiscal 2013
Sales receded by roughly 9% compared to the previous year, to €8.3 billion. This was mainly due to lower selling prices in the Performance Polymers segment resulting from declining raw material prices and the challenging competitive situation. EBITDA pre exceptionals came in at €735 million, and thus within the guided range of €710 million to €760 million. This was partly attributable to an increase in production-related costs and to negative currency effects. The Group’s EBITDA margin pre exceptionals fell to 8.9%, from 13.4% in 2012.
Group net income was impacted by impairment charges totaling €257 million in the Performance Polymers and Performance Chemicals segments and exceptional charges for the Advance program, resulting in a net loss for the full year of €159 million. Earnings per share were minus €1.91. The company will propose to the Annual Stockholders’ Meeting on May 22, 2014, that a dividend of €0.50 per share be paid for 2013, giving a payout of around €42 million.
Strategic technological partnership with Hankook Tire
LANXESS and Hankook Tire of South Korea signed a memorandum of understanding in February to co-develop synthetic rubber technologies for high-performance tires. The companies have maintained a close partnership since 2008, when Hankook Tire awarded LANXESS a long-term contract to supply solution styrene-butadiene rubber (S-SBR) and neodymium-based performance butadiene rubber (Nd-PBR) – both important materials for the manufacture of high-performance tires. In December 2012, South Korea became the second market in the world after the E.U. to introduce a tire labeling system.