Crain News Service report
LEVERKUSEN, Germany (May 9, 2013) — A weak market, particularly in the tire and automotive industries, were blamed as sales for Lanxess A.G. declined by 12 percent to $2.7 billion in the first quarter of 2013.
Net income for the firm dropped 87 percent to $33 million. The company said its report was diminished by the scheduled one-time effects of $39.5 million for its new butyl rubber plant in Singapore and the conversion to Keltan ACE technology at the EPDM rubber plant in Geleen, Netherlands.
Sales declined by double-digit percentages in all regions except for Asia-Pacific. Sales there remained roughly at the same level as the previous year, $698 million.
A strong performance from its agrochemicals business as well as growth in Asia proved to be stabilizing factors in the first quarter, the company said.
Lanxess has initiated temporary facility shutdowns in the performance polymers segment. Similar measures are planned in the performance chemicals segment, where sales decreased 7 percent to $685 million.
The performance polymers segment saw sales fall 18 percent, to $1.45 billion. The company blamed the drop on lower prices for raw materials, as well as on lower demand from the automotive and tire industries.
This report appeared in Rubber & Plastics News, an Akron-based sister publication of Tire Business.