LANXESS: Earnings advance in third quarter of 2006

Chemicals group LANXESS (www.lanxess.com) increased its operating result before depreciation and amortization (EBITDA) pre exceptionals by a double-digit percentage in the third quarter of 2006. EBITDA pre exceptionals rose by 10.8 percent in the period July through September, to EUR 164 million (Q3 2005: EUR 148 million). The EBITDA margin pre exceptionals advanced from 8.3 to 9.7 percent. LANXESS improved its operating result (EBIT) pre exceptionals by 15.9 percent to EUR 102 million (EUR 88 million). The year-on-year decline in sales of 4.8 percent to EUR 1,691 million (EUR 1,776 million) was due to portfolio changes and negative currency effects, particularly relating to the U.S. dollar. Adjusted for the divestments of the Fibers and Paper business units and the RheinChemie subsidiary iSL-Chemie, along with the adverse shifts in exchange rates, sales rose by 2.1 percent.

In the Engineering Plastics segment, sales declined by 6.8 percent to EUR 411 million (EUR 441 million) in the third quarter of 2006. Adjusted for currency effects and the sales contribution of the Fibers business unit, which was divested in the first quarter of 2006, business was only slightly down compared to the prior-year period. The Lustran Polymers (formerly Styrenic Resins) business unit was able to partially offset higher raw material and energy costs, but was adversely affected from August onward by production limitations caused by a fire at the site in Tarragona, Spain. EBITDA pre exceptionals improved from EUR 14 million to EUR 25 million, and the EBITDA margin pre exceptionals rose by 2.9 percentage points to 6.1 percent.

LANXESS AG, Leverkusen