Sales in the fourth quarter climbed 32% year on year to ?.83bn, as all of the firm’s business segments benefited from higher volumes, pricing and currency effects, the company said.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) pre exceptionals rose 19% year on year to ?72m in the fourth quarter.
For the full year, the company’s net income surged to ?79m, compared to ?0m in 2009, as sales surged 42% to ?.12bn. EBITDA pre exceptionals for the full year nearly doubled to ?18m, from ?65m in 2009.
LANXESS’ performance polymers business was the company’s largest segment in 2010, with sales rising 58% year-on-year to ?.8bn, driven by volume and price increases, it said,
Sales in the advanced intermediates segment rose 20% year-on-year to ?.3bn in 2010, supported by the integration of acquired basic chemical activities in India and China.
Meanwhile, the group’s performance chemicals segment witnessed sales rise 29% year-on-year to ?.0bn in 2010, with all of its businesses showing strong volume improvements.
LANXESS added that due to its strong business performance in 2010, the company was able to drive forward its growth strategy - capital expenditures rose 82% year-on-year to ?01m, while research and development expenditures rose 15% to ?16m.
The group said it has earmarked ?50m-600m for capital expenditures in 2011, with a large amount reserved for the company’s butyl rubber plant in Singapore.
“In view of LANXESS’ solid balance sheet and the existing financing structures, the company’s investment plans can be implemented without any difficulties,” said chief financial officer Matthias Zachert.
In its outlook, LANXESS said that overall sales and EBITDA pre exceptionals this year are expected to be higher than the results seen in 2010.
The company forecast for the global economy and the chemical industry to continue to grow, with emerging markets in Asia Pacific and Latin America showing the strongest growth rates.
“Our growth story is set to continue after an outstanding 2010 and an excellent start to 2011,” said CEO Axel Heitmann.
“Growth will be driven by our focus on emerging markets and premium products serving the global megatrends mobility, urbanisation, agriculture and water,” he added.
($1 = ?.72)
