German specialty chemicals company Lanxess, has disclosed its mid-term goal of 1.4 billion Euros (US$1.8 billion) to achieve the annual target earning, pointing out the increasing demand for fuel-efficient tyres and light-weight automotive parts
The world’s largest maker of synthetic rubber, which will ascend to Germany’s blue chip index DAX, also said on Wednesday it would aim for 1.8 billion euros in adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) in 2018, up from 1.15 billion last year.
The company has also said on Wednesday that it would target 1.8 billion Euros prior to taxes, interest, depreciation, and amortization in the next 6 years, up from 1.15 billion in 2011.
“The focus on emerging, high-growth markets will remain essential to Lanxess’ long-term growth,” the company said in a statement. It said that the Axel Heitmann, the Chief Executive of the company is investing more in plants and new businesses for its article marketing activities to meet the demands for rubber car component as well as tyres in Latin America and Asia. He is also increasing the investments on specialty rubbers that are used for fuel-efficient tyres.
“Lanxess … will maintain roughly a two-to-one ratio of organic to external growth, thus prioritizing capital expenditure projects over acquisitions,” it added. (PRA)