Sales drop at Lanxess
Sales fell 12.1% at Germany-based chemicals company Lanxess AG to €1.47 billion in the fourth quarter of 2007 compared with €1.67 billion in the prior-year period.
Meanwhile, 2007 sales fell 4.8%, totalling €6.61 billion ($10 billion) compared with €6.94 billion in 2006. The sales decline was partly related to the divestment of the Lustran Polymers business unit. This also affected net income, which was €112 million compared with €197 million in 2006.
“We withdrew from this highly cyclical business at exactly the right time,” commented Chairman of the board of directors, Dr Axel Heitmann. “Lustran Polymers was heavily dependent on petrochemical raw materials, the prices of which were highly volatile.”
The performance polymers segment saw sales rise €4.2% to 2.68 billion compared with €2.57 billion in 2006 on the back of solid price and volume increases in all business units.
Sales in the performance chemicals division fell 10.7% to €1.97 billion compared with €2.20 billion in 2006 because of portfolio changes and negative currency effects.
The company is soon to complete its acquisition of Brazilian company Petroflex, which it hopes will contribute to its growth and competitiveness in 2008. However, although it is expecting momentum in Asia, Latin America and eastern Europe, it anticipates that the subprime crisis will negatively impact US sales.
