Chennai: Specialty chemicals company Lanxess proved robust in the first quarter of the year – despite the weak economic environment due to the coronavirus pandemic.
Earnings in the new Consumer Protection segment and in the Specialty Additives segment developed positively, significantly mitigating the impact of the coronavirus crisis, said a press note.
Exchange rate effects, particularly from the U.S. dollar, also had a positive impact. By contrast, a further decline in demand from the automotive industry as a result of the coronavirus crisis had a negative effect on earnings, particularly in the Engineering Materials segment. EBITDA pre exceptionals declined by 9.9 percent from EUR 272 million to EUR 245 million in the first
quarter of 2020. The EBITDA margin pre exceptionals amounted to 14.4 percent after 15.7 percent in the prior-year quarter.
“So far, we have been able to keep the economic impact of the coronavirus pandemic within limits – mainly thanks to our balanced portfolio,” said Matthias Zachert, chairman of the board of management of Lanxess.