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Germany’s Lanxess expects 2014 result at lower end of target range

Germany’s Lanxess expects 2014 result at lower end of target range

FRANKFURT: Matthias Zachert, Chief Executive Germany’s Lanxess, the world’s No.1 synthetic rubber maker, expects its full year results to come in at the lower end of its target range.

In November Lanxess confirmed its full year target range for adjusted earnings before interest, tax, depreciation and amortisation of 780-820 million euros ($951-999 million), up from 735 million last year.

Zachert told However, the results for the full year 2014 will rather be at the lower end of the target range.

Lanxess aims to cut 1,000 jobs by the end of 2016 and targets annual cost savings of 150 million from the end of that year.

Zachert said it will take two years until we are fully back on track, adding overcapacity in the rubber business would increase and possibly lead to a further price slump.

As a result, Zachert said the company would not let two new rubber production plants, scheduled to start next year, run at full capacity to avoid accelerating the price decline.

Further Zachert said it’s still too early for a detailed outlook. Either way we’re facing another tough year. He added the company was able to survive on its own but confirmed alliances in the rubber business were an option.