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(Sharecast News) - Shares in German chemicals company Lanxess tanked on Thursday after first-quarter results revealed sharp declines in revenues and profits amid a "persistently challenging" environment.
The Cologne-based outfit, which was originally a spin-off of Bayer formed in 2004, reported sales of 1.38bn for the three months to 31 March, down 13.9% over the year before, with currency and portfolio effects having a 4.9 percentage point and 4.0pp negative impact on growth.
Double-digit declines were seen across the Consumer Protection (-10.7%) and Advanced Intermediates (-16.8%) divisions, along with a small decrease in Speciality Additives sales (-4.4%).
EBITDA pre-exceptionals totalled 94m for the first quarter, down from 133m the year before, with currency movements said to have a "noticeable impact" on the bottom line.
Adjusted earnings per share swung to a loss of 0.50, compared with a 0.23 profit previously.
"All segments benefited from lower raw material prices, which, however, together with sustained price pressure from Asia in some businesses, led to lower selling prices," the company said.
Looking ahead, the firm held on to its guidance for full-year EBITDA pre-exceptionals of 450m-550m.
Shares were 5.1% lower at 17.14 before the close of play in Frankfurt.
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