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).
Small Cap Breakfast
16 Feb 17
Saffron Energy—Schedule One update. Raising £2.5m, expected Mkt Cap £7.7m. Admission due 24 Feb. Italian Oil & Gas Play Guinness Oil & Gas Exploration—Publication of prospectus. Seeking to raise £50m and invest in 15 exploration companies at launch, with plans to grow the portfolio to 30 positions during its lifetime. Issue closing 23 Feb. Arix Bioscience — Intention to float on the main market from the global healthcare and life science Company supporting medical innovation. Raised £52m in Feb 16 with investors including Woodford Investment Management
Continued progress since interims
01 Feb 17
Carclo has announced that H217 trading remains strong and the outlook for the full year is in line with its expectations. Growth is being driven by the two larger divisions, Technical Plastics (TP) and LED Technologies, while the Aerospace division is experiencing stable trading conditions. We leave our estimates unchanged, but note potential currency upside should foreign exchange rates remain at current levels for the remainder of FY17.
N+1 Singer - Victrex - Strong Q4 delivered – meeting FY expectations
11 Oct 16
Victrex’ year end update confirms a strong Q4 performance, driven by the anticipated surge in demand from its large consumer electronics programme. Full year volume and revenue are both a touch ahead of our forecasts and consensus expectations. Invibio has delivered a steady year, in line with expectations, and the Magma oil & gas project has delivered its first meaningful revenues of over £1m. The outlook reiterates previous caution over the consumer electronics outlook but we believe this is now reflected in most analysts’ forecasts, including our own. There is no mention of currency, but this is clearly a strong tailwind for FY17 and, if current rates persist, into FY18. Overall, today’s statement should be well received. There was a lot to do in Q4 and Victrex has delivered it. In our view, the FY17 rating of 16x with a 6% yield (inc. 3% special) represents an attractive entry point for this high quality group.
Small Cap Breakfast
12 Dec 16
ECSC—Schedule 1 from provider of cyber security services. Raising £5m. Vendor sale £0.9m. Target date 14 Dec. Expected market cap £15m, with issue price of 167p. RM Secured Direct Lending - The secured direct lending fund intends to float on the Main Market on 15 December raising up to £100m
Suffering CropScience, operating CF’s tide is high
22 Feb 17
Bayer reported +2% (organic: +4%) higher sales at €46,769m and the gross profit margin improved from 54.4% to 56.6% in 2016. EBITDA rose +13% to €10,785m and net profit attributable to shareholders came in at €4,531m, up by +10%. Operating CF (+32% to €9,089m) benefited from the good operating basis and higher D/A (+12%), but the significantly lower NWC outflow (€-149m after €-817m) and the contribution from discontinued operations (Diabetes Care and CS Consumer) were the afterburner. Investing CF reflects the company’s willingness to hoard cash for the Monsanto takeover as it moved from €-2,762m to €-8,729m, primarily due to the outflows for current financial assets (€-5,645m after €-344m). Financing CF (€-350m after €-3,974m) saw a strong inflow from capital contributions and lower net gross debt repayments (€-730m after €-2,929m). Management will propose a +8% higher dividend of €2.70 (€2.50) per share at the AGM on 28 April 2017. Management gave a detailed 2017 guidance and expects sales to increase to over €49bn. EBITDA before one-offs is seen to increase by a mid single-digit percentage and core earnings per share from continuing operations by a mid single-digit percentage as well.