LANXESS has continued on its path of growth and is increasing its earnings forecast for the full year 2008. The company now expects EBITDA pre exceptionals to come in at between EUR 710 million and EUR 730 million. Thanks to its leading market positions and regionally diversified product portfolio, LANXESS is confident of achieving operational sales growth for the current year as a whole. "Following a very successful third quarter, we are raising our earnings forecast for 2008," said Axel C. Heitmann, Chairman of the Board of Management of LANXESS AG.

Sales in the Asia-Pacific region expanded by a substantial 31.4 percent against the same period of last year, after adjusting for currency effects and for divested or newly integrated businesses. LANXESS once again achieved double-digit growth rates in China, India, South Korea and Japan.

China

LANXESS in Greater China has once again achieved strong double-digit growth in sales despite the difficult economic environment. Sales for the region showed an increase of more than 25%, adjusted for portfolio and currency effects.  The Butyl Rubber, Performance Butadiene Rubbers, Semi-Crystalline Products and Basic Chemicals business units displayed especially strong performances, driving LANXESS's profitable growth in China.  Due to the stability of demand from existing cutomers and new programs, the Semi-Crystalline business unit maintained solid growth. The Basic Chemicals business unit also realised good growth through its strong sales in the Polyols business and ability to pass on raw material price increases.

In addition to the rapid expansion in business, the Wuxi laboratory, launched in March 2008, further strengthened the company's offering of value-added services to customers in China. The laboratory provides comprehensive technical services for industrial biocides which are marketed under the Preventol brand. Opened since March 2008, the laboratory in Wuxi has increased the number of tests performed for Chinese manufactures of products such as paints, polymer emulsions, glues and adhesives, mineral slurries and construction chemicals.
 
The designated Country Representative and present CFO Mr. Martin Kraemer said: "I am particularly pleased that LANXESS  has continued to grow at a fast pace despite the global economic recession. The Asia-Pacific market, especially China, is playing an increasingly important role in LANXESS's global strategy for sustainable success. LANXESS's positive financial performances in China, and elsewhere across Asia, are proofpoints that the company's "LANXESS Goes Asia" focus is both strategic and forward-looking."

India

LANXESS in India has traced a positive pattern in the year 2008 so far. Sales improvement showed a significant growth over Q3 2007. Sales for Q3 2008 grew impressively by more than 60% over last year. By business segments, percentage sales growth for Performance Polymers more than doubled; Advanced Intermediates recorded strong double-digit growth; and Performance Chemicals increasd by nearly one-third.

Major contribution to our enhanced performance came from the business units Basic Chemicals (BAC).  Business units Butyl Rubber (BTR), Performance Butadiene Rubber (PBR) and Semi Crystalline Products (SCP) also showed significant growth. Meanwhile, Business Units Rubber Chemicals (RUC), Material Protection Products (MPP) and Inorganic Pigments (IPG)  achieved steady growth.  

Dr. Joerg Strassburger MD and country representative for LANXESS India Private Limited stated: “The third quarter has shown excellent results with sustained growth in India, thus strengthening our foundation for continuing success into the future.  LANXESS India has grown steadily quarter on quarter and has carved out a strategic position in the chemical market.  Inspite of the global crisis we still see opportunities offered by the market as well as growth industries where our customers have made investments in new facilities."

South Korea

In third quarter 2008, LANXESS's sales in Korea achieved significant double-digit growth of more than 50%, compared to third-quarter last year. The top growth contributors are the company's Performance Polymer and Advanced Intermediate business segments, fueled by demand from the fast-growing automotive, tire and shipbuilding industries. Another important factor for the growth was that LANXESS as a global business player could successfully supply high quality products at the right time to meet customers' growing demand.

Jewoong Ko, Managing Director, LANXESS Korea, commented, "The strategic partnership with customers in Korea contributed to its sales growth, despite the tight supply of rubber products in the global market."

Japan

Japan has achieve more than 23% increase in sales, adjusted for portfolio and currency, helpd by solid performances from the Semi-Crystalline Products and Polybutadiene Rubber business units.
Hiroaki Ito, President & CEO of LANXESS K.K. said, "Despite the global economic turmoil, in Japan, sales achieved a double digit growth rate.  Most of our business units are developing sales in Japanese premium market. I believe that this strategy and all of our employees' efforts contributed greatly to the positive third-quarter result."

ASEAN

During the third quarter of 2008, LANXESS's sales in Thailand achieved double-digit growth of over 30% year-on-year, adjusted for portfolio and currency effects. This was mainly due to strong demand for the company's butyl rubber and semi-crystalline products. Sales in Singapore grew on a flat basis by more than 25%, led by the Semi-Crystalline Products and Technical Rubber Products Business Units. In Vietnam, LANXESS also grew its sales by more than 10% on a flat basis due to demand for its butyl rubber products.

Ian Wood, Managing Director, LANXESS Pte Ltd, said, "The ASEAN region has performed well in the past three quarters of 2008. This success is due to our innovative product portfolio through continuing R&D activities and initiatives to deliver value-added services and faster response time to our customers."

As an example of providing greater value to customers, LANXESS's microbiology laboratory in Singapore for material protection has added several new test methods and customized existing ones to meet the special needs of customers across the Asia Pacific region. These tests range from conventional analytical methods to various microbiological tests to determine the efficacy of LANXESS biocides in customers' products. The laboratory in Wuxi, China, has similarly increased the number of tests performed for Chinese manufacturers of products such as paints, polymer emulsions, glues and adhesives, mineral slurries and construction chemicals.

At the microbiology laboratories in Singapore and China, tests are done to ensure that LANXESS material protection products used by customers offer the best safeguard against attacks by microbes such as bacteria, fungi, yeasts and algae. The laboratories also work closely with customers to identify and eliminate potential sources of contamination by microorganisms in their production process. Another important technical service offered by LANXESS is to ensure compliance with increasingly stricter regulatory requirements on the use of biocides.

Australia

In Australia, during the third quarter of 2008, LANXESS increased its sales on a flat basis by more than 15% year-on-year, adjusted for portfolio and currency effects. The top performers were Business Units Semi-Crystalline Products, Basic Chemicals and Inorganic Pigments.

Grant Wakefield, Managing Director, LANXESS Australia Pty Ltd, said, "LANXESS has a well-diversified customer base which has allowed us to tap into a variety of growth opportunities in Australia. This has been instrumental in sustaining our momentum of growth during this time of economic crisis."

The global earnings release can be found here

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