15 novembre, 2006 13:31
Lanxess Posts Third-Quarter Profit on Plant Closures (Update1)
By Sheenagh Archey
Nov. 15 (Bloomberg) -- Lanxess AG, the German chemical maker spun off from Bayer AG last year, posted a third-quarter profit after it closed plants, cut jobs and merged production lines.
Net income was 36 million euros ($46 million), or 43 cents a share, compared with a year-earlier loss of 57 million euros, or 67 cents, the Leverkusen-based company said in a statement today. Sales fell 5 percent to 1.69 billion euros.
Chief Executive Officer Axel Heitmann plans to boost profitability at Lanxess to the level of competitors such as Dow Chemical Co. and BASF AG by 2009. He's cut about 13 percent of the workforce, closed plants in the U.S. and Brazil and is passing on higher raw-material costs to customers.
``This pleasing trend is a clear indication that our strategy is increasingly bearing fruit,'' Heitmann said in the statement. The CEO stuck by forecasts for full-year operating profit of 660 million to 680 million euros, a gain of at least 14 percent compared with last year.
Shares of Lanxess have gained 44 percent this year, giving the company a market value of 3.29 billion euros.
Analysts surveyed by Bloomberg had predicted third-quarter net income of 37 million euros on sales of 1.68 billion euros.
Heitmann is also aiming for earnings before interest, tax, depreciation and amortization equal to 12-14 percent of sales by 2009, he said on Sept. 14. Last year's margin was 8.1 percent.
Lanxess and former parent Bayer AG plan to save 125 million euros a year by 2009 by cutting 600 jobs and selling operations at their Bayer Industry Services venture, it said last month.
The company is looking for small or medium-sized acquisitions to either expand existing operations or add new product areas. While Heitmann has no specific targets in mind, the CEO would consider buying a company with a ``few billion'' euros in sales, he said in September.
To contact the reporter on this story: Sheenagh Archey in Frankfurt at sarchey@bloomberg.net
Last Updated: November 15, 2006 02:55 EST
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Bloomberg - USA
... Chief Executive Officer Axel Heitmann plans to boost profitability at Lanxess to the level of competitors such as Dow Chemical Co. and BASF AG by 2009. ...
