Cologne, Germany – Lanxess, which purchased Chemtura in 2017, posted record earnings for its 2017 financial year with sales just under EUR 7bn.
Lanxess sales up 25% in 2017, largely driven by Chemtura purchase
Sales were up 25.5% on 2016 to EUR 6.99 bn in 2017. Net income, before exceptional items, was up 29.6% to EUR 1.29 bn, the company said.
The impact of the purchase of Chemtura was felt in the net income line of the profit and loss statement. This fell from EUR 192 m in 2016 to 87m in 2017. The company said that this was a result of 'significant one-time exceptional expenses, particularly for the integration of the Chemtura businesses'. US tax reforms also hit the number.
Lanxess said in its annual report that it plans to achieve EUR 100m/year cost savings by integrating the Chemtura business by 2020.
The company added that sales in its engineering materials segment increased by 29.4 % between 2016 and 2017. Sales were EUR 1.06 bn in 2016, and EUR 1.37 bn in 2017.
EBITDA before exceptionals was EUR 219 m, up by 37.7 % on 2016. In 2016, EBITDA in the division was EUR 159 m. Sales from the urethanes business, acquired with Chemtura, higher prices and volumes helped.
Matthias Zachert, chairman Lanxess' management board, said: ' With Chemtura, we successfully completed our biggest acquisition, and significantly improved our portfolio.'