MOSCOW (MRC) -- LANXESS AG Chief Executive Officer Matthias Zachert, five weeks into the role, said it will take as many as three years to regain lost customers and turn around the maker of synthetic rubber and agricultural chemicals, said Bloomberg.
Zachert is starting with a capital increase of 10 percent that raised about EUR430 million (USD598 million). That will help pay for a "painful" restructuring, which may include temporary and permanent plant closures, divesting units and partnerships in production and raw-material supply, he said on a call yesterday.
The 46-year-old executive said it won’t be a "quick fix" and the Cologne, Germany-based maker of synthetic rubber has to reestablish trust and then long-term contracts with lost clients. Lanxess last year posted its first annual loss since its 2005 stock-market debut and halved its dividend after focusing too heavily on the auto and tire industries.
"It’s going to be a very long and winding road," Zachert said on the call, commenting on his decision to take the post. “I knew upfront about very tough decisions like fixing the balance sheet structure, closing plants, terminating contracts and reducing workforce. This is not easy stuff to do."
LANXESS AG reported net income for the first quarter of EUR 25 million or EUR 0.30 per share, flat with the prior-year level, said the producer in its press release.
Sales were down by 2.5% to EUR 2 billion as the encouraging increase in volumes in all segments did not offset the drop in selling prices and negative currency effects.
LANXESS AG reported net income for the first quarter of EUR 25 million or EUR 0.30 per share, flat with the prior-year level. Sales were down by 2.5% to EUR 2 billion as the encouraging increase in volumes in all segments did not offset the drop in selling prices and negative currency effects.
LANXESS is a leading specialty chemicals company with sales of EUR 8.3 billion in 2013 and roughly 17,300 employees in 31 countries. The company is currently represented at 52 production sites worldwide. The core business of Lanxess is the development, manufacturing and marketing of plastics, rubber, intermediates and specialty chemicals.
MRC