Rangses, 1Q Operating Profit Up 32% YoY to 420 Billion Won... "Strong Performance Expected in Q2 as Well"

"2Q Operating Profit Forecast: 280 Million to 350 Million KRW"

[Asia Economy Reporter Moon Chaeseok] German specialty chemicals company LANXESS announced on the 16th that its operating profit for the first quarter increased by 32.2% year-on-year to 320 million euros (approximately 425.8 billion KRW). This is an estimate based on earnings before interest, taxes, depreciation, and amortization (EBITDA).

Sales rose 43.7% during the same period to 2.432 billion euros (approximately 3.2365 trillion KRW). Net profit increased by about 46% to 98 million euros (approximately 130.4 billion KRW). The company explained, "All business segments grew steadily, with strong performance in the specialty additives division playing a key role," adding, "We were able to reflect the increases in raw material and energy prices in product prices, and the successful acquisitions of Emerald Kalama Chemical and others also had a positive impact on the results."

LANXESS projected second-quarter operating profit to be between 280 million and 350 million euros (approximately 372.6 billion to 465.7 billion KRW). It also expects annual results to surge compared to last year. However, the potential impact of Russia's invasion of Ukraine on this year's performance outlook and the contribution from the acquisition of the microbial control business of the U.S.-based specialty chemical company IFF, scheduled for early third quarter, have not been factored in.

Matthias Zachert, Chairman of LANXESS, said, "Our strong market position built around specialty chemicals over recent years has shown results," adding, "While we continue steady growth by reflecting increases in raw material and energy prices in product prices, it is difficult to predict how the war will affect future performance, so we are closely monitoring the situation."

Source=Langsseu