Lanxess reveals first year results

German chemical company Lanxess had a successful first year in business in 2005, posting a significant improvement in earnings, but is continuing to keep its portfolio under review.

Sales amounted to Euro 7.15bn, 5.6% up on the previous year, while the company's key earnings indicator, EBITDA pre exceptionals, improved by 30% to €581m. The EBITDA margin pre exceptionals rose from 6.6% to 8.1%. "In 2005 we took advantage of our independence to lay the foundation for an internationally competitive enterprise," said management board chairman Dr Axel C. Heitmann.

With effect from 1 April 2006 the company spun off its fine chemicals business unit into a separate legal entity, Saltigo, which will operate as a Lanxess subsidiary. Heitmann denied strenuously that Saltigo was being groomed for sale. The separation had been necessary, he said, because Saltigo required a very different sales structure from the other divisions selling to multichemical customers. Saltigo was created to establish a strong platform for further growth, he said, hinting that it could eventually make acquisitions or form joint ventures in its own right.