Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on LANXESS AG. We currently have 9 research reports from 1 professional analysts.
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Perfect landing and a good start to 2017
15 Mar 17
Lanxess reported accidentally its 2016 figures a day earlier than announced. Sales declined 3% (organic: -2%) to €7,699m, but the gross profit margin was up +7ßbp to 22.8% helped by higher volumes (+4%). EBITDA rose +13% to €945m and net income attributable to shareholders came in at €192m after €165m. Operating CF stood pretty much unchanged at €689m (€692m) as the swing in NWC (€-3m after €60m) ate completely up the stronger operating performance. Investing CF (€-2,879m after €-400m) was hit by the re-investment of the cash contribution from the creation of Arlanxeo and the proceeds of the bonds issuance for the financing of the planned Chemtura acquisition. Additionally, €-200m was spent on the external financing of pension obligations. Financing CF moved from €-333m to €2,173m, as it faced a €1,194m cash inflow from non-controlling interests (Arlanxeo) and a swing from net gross debt repayments (€-200m) to net gross debt issuance (€1,107m). Management will propose a +17% higher dividend of €0.70 (€0.60) per share at the AGM on 26 May 2017. For 2017, management expects a slight increase in EBITDA before one-offs (2016: €995m) and, after the closing of the acquisition, Chemtura will then make additional contributions.
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.
N+1 Singer - Uncovered Gems - Speed Dating Lunch - A Famous Five for the future?
12 Apr 17
On Friday we hosted our third “speed dating” lunch with the management of five very interesting and contrasting companies not under our formal coverage: Be Heard, Byotrol, Gfinity, Oxehealth and Plant Impact. Each company gave a concise and punchy overview of its business and investment case to a group of fund managers, before rapid fire Q&A. Below we summarise our thoughts on each company with more details inside the note, plus some relevant slides. We believe that all five companies are well-managed and well worth a closer look - we intend to repeat this efficient and popular format for engaging with management teams.
N+1 Singer - Morning Song 25-04-2017
25 Apr 17
Carpetright (CPR LN) Tougher conditions leaves forecasts towards lower end of range | Centaur Media (CAU LN) Bigger steps | Elementis (ELM LN) Positive update confirms strengthening of demand | Rathbone Brothers (RAT LN) Facing the challenge to deliver growth | Vp (VP/ LN) Another niche Hire Station deal prompts 3% EPS upgrades
Small Cap Breakfast
24 Apr 17
Global Ports Holding—Intention to float on Standard List of the Main Market. International cruise ports operator. Seeking $250m raise including $75m primary offer. Dorcaster—Schedule One Update. Admission now expected on AIM 3 May. RTO of Escape Hunt raising £14m at 135p. Verditek— Intention to float on AIM. On Admission, the Company's subsidiaries will be involved in advanced solar photovoltaic, filtration and absorption technologies specialising in providing environmental services. Raising £3.5m. Admission in May. Eddie Stobart Logistics— Schedule 1 update. Admission expected 25 April on AIM raising £122m. ADES International Holding— Intends to join the Standard List of the Main Market in May raising up to $170m plus a vendor sale. Provider of offshore and onshore oil and gas drilling and production services in the Middle East and Africa. Admission expected in May. Tufton Oceanic Assets– Offer extended to 9 May on specialist funds segment of Main Market to enable investors to complete further due diligence.
N+1 Singer - Elementis - Positive update confirms strengthening of demand
25 Apr 17
Elementis’ AGM statement confirms a positive start to the year with stronger demand evident in most markets during Q1. This reinforces our confidence that 2017 will see a return to earnings growth after the challenges of 2016. It has been a busy period strategically with the sale of the non-core US colourants business and the closure of the Jersey City facility, as well as the significant acquisition of SummitReheis. The SummitReheis deal closed on 24th March, three months earlier than originally planned, prompting a 5% earnings upgrade to FY17 this morning. In our view prospects for the coming years are bright and Elementis remains a Best Idea for 2017.
N+1 Singer - Morning Song 12-04-2017
12 Apr 17
Futura Medical (FUM LN) Multiple licensing discussions underway | Low & Bonar (LWB LN) Solid Q1, trading in line | Nuclear options Significant long-term opportunities for UK companies | RhythmOne (RTHM LN) Trading update – profit and cash ahead | Uncovered Gems - Speed Dating Lunch A Famous Five for the future?