With close to a 14% increase in EBITDA pre-exceptionals in the first quarter of 2016 to €262 million, Lanxess now expects it to reach €900- 950 million in fiscal 2016. The company had previously assumed earnings of between €880 million and €930 million. The positive development is attributed to increased volumes, higher capacity utilisation and positive currency effects.

Net income increased substantially to €53 million, compared with €22 million in the first quarter of 2015. Sales decreased 6% from €2.04 billion to €1.92 billion, mainly as a result from the adjustment in selling prices to reflect lower raw material prices.

“Our good business performance shows that Lanxess is becoming more stable and more profitable. This positive development is supporting our growth course, on which we have already made further headway also in this year,” said Matthias Zachert, Chairman, Lanxess.

Sales of the Performance Chemicals segment, which includes leather chemicals, were flat year-on-year at €533 million. The company reported that while lower selling prices diminished sales, higher volumes had the opposite effect. EBITDA pre-exceptionals of the segment advanced by almost 13% to €98 million, compared with €87 million a year earlier, supported by higher volumes and positive currency effects. The EBITDA margin pre exceptionals increased from 16.3% to 18.4%.

Despite a challenging market environment in recent times, the speciality chemicals manufacturer also reported a successful fiscal 2015 in early March, with all segments contributing to the earnings improvement. Read more here. Read more here.