Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on LANXESS AG. We currently have 8 research reports from 1 professional analysts.
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Lower prices mist the picture – outlook again lifted
10 Nov 16
Q3 sales (-2% to €1,921m) was burdened by passing through lower raw material prices (p: -7%), whereas volumes positively developed (+5%). Gross profit margin came in unchanged at 23.2% (23.3%) and EBITDA was up +11% to €241m. Net profit attributable to shareholders rocketed +51% to €62m. Operating CF reflected the good operating performance, additionally helped by higher NWC inflow (€113m after €38m) primarily propelled by a swing in trade payables into the black. Investing CF (€-170m after €46m) was dominated by the €-198m outflow for former Chemour’s Clean and Disinfect business. Financing CF (€-264m after €-75m) mainly saw higher net gross debt repayments (€-259m after €-59m). Management again lifted FY 2016 guidance, now expecting EBITDA pre one-offs in the €960-1,000m (€930-970m) range.
Better in additives
26 Sep 16
Lanxess has announced the acquisition of Chemtura, a US-based speciality chemicals company, for an equity value of ~€1.9bn (EV: ~€2.4bn). Anticipating a positive response from Chemtura’s shareholders and positive votes from the anti-trust authorities, closure is expected to take place in mid 2017.
Another quarter of weaker sales, but profitability up
10 Aug 16
Q2 sales were down 8% (prices: -7%; volume: +1%; FX: -1%) to €1,943m, but the gross profit margin strongly rose from 23.0% to 25.0%. EBITDA came in slightly weaker (-2% to €291m) and net profit attributable to shareholders dropped 14% to €75m, facing €-8m (nil) of minority interest. Operating CF strongly moved up (+51% to €180m), lacking the previous year’s quarter minus-sign-carrying disposal gains and lower NWC outflows (€-79m after €-101m). Investing CF (€-981m after €-151m) absorbed the payments for financial assets investing in the purchase price for the ARLANEXO share and a €200m cash outflow for the addition to the German pension fund assets. Financing CF swung from €-105m to €1,115m, primarily due to the €1,194m inflow for Saudi Aramco’s interest. Management again lifted FY 2016 guidance, now expecting EBITDA pre one-offs in the €930-970m (€900-950m) range.
Guidance lifted based on good Q1 figures. Too early?
11 May 16
Despite lower Q1 sales, which declined 6% (prices: -8%; volumes: +2%; FX: +1%) to €1,920m, the gross profit margin moved strongly up from 21.7% to 24.0%. EBITDA jumped +41% to €251m and net income attributable to shareholders moved up from €22m to €53m. Operating CF did not fully reflect the strong operating performance (€48m after €33m) as NWC outflow was up (€-141m after €-124m) driven by higher receivables and lower payables. The latter looks to us like a kind of financing of suppliers and the former is linked to higher business activities in the reporting period. Investing CF swung from €-61m to €56m, nudged by cash inflows from financing assets (near cash assets are nil in the balance sheet as of 31/03/2016). Financing CF moved from €-52m to €-137m due to higher net gross debt repayments (€-151m after €-44m). Management lifted its FY 2016 guidance, now expecting EBITDA pre one-offs in the €900-950m (€880-930m) range, which wipes out the former expectation that H2 16 might be softer.
Conciliatory ending to 2015
17 Mar 16
After the long period of weaker sales, Q4 was no dramatic change, but profitability continued to stabilise. Q4 sales were -5% (price: -10%) to €1,806m, but the gross profit margin strongly increased from 17.3% to 20.2%. EBIT swung from €-62m to €71m and net profit attributable to shareholders came in at €15m after €-68m. Q4 operating CF dropped 14% to €350m mainly due to lower NWC inflows (€249m after €381m). Investing CF declined from €-91m to €-234m suffering from a swing from an inflow (€142m) to an outflow (€-25m) in financial assets. Financing CF (€-101m after €-175m) saw some lower repayments of borrowings (€-85m after €-156m). Management proposes a +20% higher dividend (€0.60 after €0.50) at the next AGM on 20 May 2016. For FY 2016, management sees EBITDA pre one-offs in the €880-930m range and at €240-260m in Q1. Furthermore, H2 16 is expected to be softer.
Getting fragile traction
05 Nov 15
Sales continued to suffer, but profitability continued to improve yoy. Q3 sales declined 4% (organic: -11%) to €1,953m, suffering from lower (raw material) prices (-10%). The gross profit margin strongly rose by +3.6pp to 23.3%. EBITDA increased +19% to €218m and net profit attributable to shareholders rose +17% to €41m. Operating CF came in a bit weaker (€190m after €201m) despite the better operating performance seeing lower NWC inflows (€38m after €68m). Investing CF swung from €-81m to €46m driven by significantly higher inflows from financial assets (€142m after €29m). Financing CF moved from €-147m to €-75m helped by lower net gross debt repayments. Management again lifted FY guidance expecting EBITDA pre one-offs to come in at €860-900m (prev.: €840-880m; 2014: €808m).
Innovate, specialise, integrate, globalise
01 Dec 16
Carclo has refocused investment in its established businesses (Technical Plastics and LED Technologies), where a differentiated offer and long-term relationships with customers provide good earnings visibility and more certainty of a return. This strategy delivered strong revenue and profits growth during H117. This growth appears set to continue, underpinned by long-term relationships with blue-chip customers. We leave our estimates and indicative valuation broadly unchanged and introduce our estimates for FY19.
Small Cap Breakfast
29 Nov 16
Asia Pacific Investment Partner - the research-driven emerging and frontier markets real estate development business intends to float on AIM and conduct a placing in December RM Secured Direct Lending - The secured direct lending fund intends to float on the Main Market on 15 December raising up to £100m Diversified Oil & Gas— Schedule One now out. $60m to be raised. Expected admission 6 December. Creo Medical Group —UK based medical device company focused on surgical endoscopy, a recent development in minimally invasive surgery. Admission due 7 December. Fundraising details TBA.
30 Nov 16
Results have yet again beaten our forecasts and the management has now delivered the fourth consecutive year of earnings above expectations. The share price is up 41% over the last three months, and Treatt is steadily moving from commoditised sales to more value-added products. Its strategy of deep customer relationships is paying off, giving it a real competitive advantage and improving margins. The year finished strongly and momentum is due to continue in the traditionally seasonally weaker Q117. Our P&L forecasts are broadly maintained, but our fair value moves to 272p (from 240p) as a result of stronger cash flow.
N+1 Singer - Carclo - Trading in line; all divisions performing well
15 Nov 16
Trading remains positive with momentum strong in Plastics and LED. For those willing to look past the pension and dividend issues discussed previously (or for those who think bond yields will now start to help the situation), we feel that there is an attractive investment case at these levels (P/E of c.10x March 17). We remain at Buy.