LANXESS with strong third quarter of 2021

Mumbai, November 8, 2021: Specialty chemicals company LANXESS holds its own also in a challenging environment: Despite a sharp rise in raw material, energy and freight costs, EBITDA pre exceptionals in the third quarter of 2021 increased by 44.0 percent to EUR 278 million, against EUR 193 million in the prior-year quarter.

The strong earnings were driven by all segments – especially Specialty Additives and Engineering Materials. LANXESS passed on the significantly increased raw material prices via higher selling prices. The three acquisitions completed in this fiscal year, especially that of Emerald Kalama Chemical, also contributed to the good results. Adverse exchange rates, mainly from the U.S. dollar, but especially higher energy and freight costs prevented a further increase in earnings. The EBITDA margin pre exceptionals increased to 14.2 percent in the third quarter, against 13.2 percent in the prior-year quarter.

“The third quarter of this year was again characterized by growth. Our operating business continued to develop positively, and we successfully passed on the significantly increased raw material costs. With the announced acquisition of IFF Microbial Control, we will also be significantly expanding our Consumer Protection segment again in the future. This will make us more stable and more profitable,” said Matthias Zachert, Chairman of the Board of Management of LANXESS AG. “However, the unprecedented increase in energy, raw material and freight costs is not leaving us unscathed. We expect the cost pressure to even increase in the fourth quarter.” Due to these cost increases, strained supply chains and power rationing in China, which is having a negative effect on production there, LANXESS expects EBITDA pre exceptionals for the full year to be at the lower end of the guided range of EUR 1 billion to EUR 1.05 billion.

With an increase of 33.5 percent year on year, LANXESS generated sales of EUR 1.951 billion in the third quarter of 2021. At EUR 68 million, net income from continuing operations was higher than in the third quarter of 2020, in which LANXESS generated EUR 25 million. This was due to the good development of the operating businesses and the contribution of Emerald Kalama Chemical.