Lanxess has good 2018 financial year

Cologne Germany — Lanxess had sales of EUR 7.2bn in 2018, up by 10.2% on the previous financial year.

Adjusted EBITDA across the business rose noticeably by 9.8%, and reached EUR 1bn in 2018.

Sales in the company's engineering materials business rose by 15.4% between 2017 and 2018. They reached EUR 1.6bn in the 2018 financial year. This compares with EUR 1.4bn in the previous year.

Lanxess said that the urethanes business that was taken over as part of the Chemtura acquisition in 2017 made a positive contribution to the result. The rest of the improvement in sales came from plastics for lightweight construction.

In addition, adjusted EBITDA in the division was 21.9% up at EUR 267m in 2018. This compares with EUR 219m in 2017.

'Despite rising economic headwinds, we delivered on our promises. Lanxess now has a very clear focus on specialty chemicals,' said Matthias Zachert, the company's chairman.

Meanwhile, at the end of December 2018, Lanxess sold its 50% interest in Arlanexeo, a rubber joint-venture with Saudi Aramco, to its partners. Lanxess generated EUR 1.4bn from its share.

'We have used the proceeds from the sale to further strengthen our balance sheet. In addition, we have gained additional scope to drive our growth forward organically and through acquisitions,' said CFO Michael Pontzen.