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•Sales were the same as the previous year at 6.
802 billion euros
802 billion euros
•earnings before interest, tax, depreciation and amortization in the regular business area increased by 3.
3 percent to 1.
019 billion euros
3 percent to 1.
019 billion euros
•EBITDA margin of 15 % for the first time in regular business
•EBITDA margin of 15 % for the first time in regular business•The Leather Chemicals business is classified as a discontinued operation, and the previous year's figures for sales and EBITDA have been restated accordingly
•The Leather Chemicals business is classified as a discontinued operation, and the previous year's figures for sales and EBITDA have been restated accordingly•Proposed dividend for fiscal year 2019 : EUR 0.
95
95
• 2020 target : smooth operation, but pressure from Covid- 19 ; EBITDA of EUR 900 million to EUR 1 billion in regular business
• 2020 target : smooth operation, but pressure from Covid- 19 ; EBITDA of EUR 900 million to EUR 1 billion in regular business• A greater focus on consumer protection and battery technology in the future
• A greater focus on consumer protection and battery technology in the future• Double-digit growth in Greater China
• Double-digit growth in Greater ChinaQian Mingcheng, President of LANXESS Asia Pacific, explained the details of the company's 2019 financial report, as well as the new business layout and outlook in 2020
.
Qian Mingcheng, President of LANXESS Asia Pacific, explained the details of the company's 2019 financial report, as well as the new business layout and outlook in 2020
.
The three business segments, High Quality Intermediates, Specialty Additives and Performance Chemicals, all delivered strong results, compensating for the decline in the Engineering Materials segment, which was primarily driven by weak demand from the automotive industry
.
"In 2019, the economic environment was difficult, and we also withstood the first real test since the company's restructuring
.
As of December 31, 2019, the Leather Chemicals business unit is classified as a discontinued business
.
At 6.
802 billion euros, the LANXESS Group achieved sales almost unchanged from the previous year (6.
824 billion euros)
.
Qian Mingcheng, President of LANXESS Asia Pacific, said: "Despite the challenging global economic situation in 2019, LANXESS Greater China achieved double-digit growth, thanks to our balanced business layout
.
Dividends increase again
Dividends increase againIn fiscal 2019, the dividend will also increase again
.
New Business Sector: Consumer Protection
New Business Sector: Consumer ProtectionLANXESS wants to focus more on consumer protection products in its development process, so it is currently adjusting its business segment structure, and the results of the adjustment will take effect immediately
.
The Saltigo business unit, the liquid purification technology business unit and the material protection business unit form a new consumer protection business segment
.
The business segment's product portfolio includes active ingredients for the agricultural and pharmaceutical industries, insect repellents and disinfectants, as well as water treatment and water purification technologies
.
"Our consumer protection business segment is characterized by high-speed and steady growth
.
At the same time, we have years of expertise in these often heavily regulated market sectors, which gives us a competitive advantage," Chang Mutian said.
said
.
The Consumer Protection segment will replace the previous Performance Chemicals segment
.
At the same time, the Inorganic Pigments business unit has now been incorporated into the High Quality Intermediates business segment
.
Beginning in the first quarter of 2020, reports will be adjusted accordingly
.
Lithium Project: Pilot Facility Starts Trial Operation
Lithium Project: Pilot Facility Starts Trial OperationLANXESS has made further progress in a commercial extraction project of battery-grade lithium at its production site in El Dorado, Arkansas, in cooperation with its partner Standard Lithium
.
At this production site, LANXESS operates three production plants for bromine products
.
Bromine can be obtained from the brine extracted here, which also contains lithium
.
Standard Lithium has developed an innovative method to extract high-purity lithium directly from brine
.
A pilot facility built within the factory will begin trial operation in March 2020
.
LANXESS expects to have preliminary study results on technical feasibility by mid-2020
.
2020 Outlook: Smooth operation, but Covid-19 will cause stress
2020 Outlook: Smooth operation, but Covid-19 will cause stressLANXESS expects its operating business to remain stable in fiscal 2020, but the Covid-19 pandemic will have an impact of 50 million to 100 million euros on operating results for the entire year
.
As a result, LANXESS generally expects EBITDA in its usual business area to be between 900 million and 1 billion euros
.
The specialty chemicals company now expects to spend around EUR 20 million in the first quarter of 2020 due to the COVID-19 pandemic
.
Full Year 2019 Details: Earnings Growth in Three of the Four Business Segments
Full Year 2019 Details: Earnings Growth in Three of the Four Business SegmentsOverall, the performance of the High Quality Intermediates segment in 2019 was better than the previous year due to the strong project business of the Saltigo business unit in the field of agrochemicals and the favorable exchange rate effect
.
Despite the negative price effect of lower raw material prices, sales in this segment increased by 1.
9 percent to EUR 2,249 million compared to EUR 2,207 million in the previous year
.
EBITDA increased from EUR 359 million to EUR 389 million, an increase of 8.
4%
.
EBITDA increased from 16.
3% to 17.
3% in the regular business area
.
Despite weak demand from the automotive industry and the termination of several low-margin contract manufacturing agreements by LANXESS, the Specialty Additives segment performed well in fiscal 2019
.
This was due to favorable exchange rate effects and strong business in the Polymer Additives business unit
.
Sales in this business segment were EUR 1,965 million, close to the previous year's level (EUR 1,980 million)
.
Benefiting from cost synergies resulting from the integration of Chemtura, EBITDA in the regular business area increased by 2.
9 percent to EUR 353 million, slightly higher than EUR 343 million in the previous year
.
The profit before interest, tax, depreciation and amortization in the ordinary business area increased to 18.
0% from 17.
3% in the previous year
.
Sales and profits in the Performance Chemicals segment improved significantly in 2019, mainly due to the operational strength of the business units related to water treatment and material protection and positive currency effects
.
Sales in this business segment amounted to EUR 1,052 million, an increase of 7.
8 percent compared to EUR 976 million in the previous year
.
Earnings before interest, tax, depreciation and amortization in the regular business range increased by 23.
1 percent from EUR 156 million to EUR 192 million
.
EBITDA increased from 16.
0% to 18.
3% in the regular business area
.
As of December 31, 2019, the Leather Chemicals business unit will be classified as a discontinued operation and therefore no longer part of the Performance Chemicals business segment
.
Data for the previous year have been restated accordingly
.
The development of the Engineering Materials business segment continued to be affected by weak demand from the automotive industry
.
Favorable exchange rates have only slightly mitigated the situation
.
Sales decreased by 8.
0% from EUR 1,576 million to EUR 1,450 million due to lower selling prices due to lower raw material costs
.
Earnings before interest, tax, depreciation and amortization in the regular business area were 238 million euros, down 10.
9 percent compared to the previous year's 267 million euros
.
However, the EBITDA margin in the regular business area was 16.
4%, only slightly lower than the previous year's 16.
9%
.
*Adjusted prior year sales, EBITDA and profit margins in the regular business line, number of employees
.
Net income relates to continuing operations and discontinued operations
.
Net income relates to continuing operations and discontinued operations * adjusted prior year sales, EBITDA and profit margins in the ordinary course of business, number of employees
.
Net income relates to continuing operations and discontinued operations
**Exclude short-term money market investments and securities
**Exclude short-term money market investments and securities **Exclude short-term money market investments and securities***Number of employees employed in continuing operations as of reporting date
***Number of employees employed in continuing operations as of reporting date***Number of employees employed in continuing operations as of reporting date
