Lanxess chemicals says profits up in Q2

Lanxess, the German maker of speciality chemicals, said on Wednesday that its profits rose in the second quarter, driven by strong demand for agrochemicals. ‘Business development in the second quarter of 2014 was marked by good demand for agrochemicals and a positive impetus from the construction industry, but also by a persistently difficult competitive situation for synthetic rubbers and negative currency effects,’ Lanxess said in a statement. Bottom-line net profit rose to 55 million euros ($74 million) in the period from April to June from 9.0 million euros a year earlier. Underlying or operating profit grew by 20.7 per cent to 239 million euros, while sales dropped by 5.7 per cent to 2.019 billion euros. Sales volumes were increased in all regions, except Latin America, but these could not offset a 5.0-per cent drop in selling prices, Lanxess explained. Looking ahead, Lanxess said it ‘continues to anticipate higher earnings in 2014 compared to the previous year.’  ‘We are narrowing our original earnings guidance of between 770-830 million euros, and now expect to achieve underlying profit of between 780-820 million euros,’ said chief executive Matthias Zachert, according to AFP.