Welcome to LANXESS Interim Report 2012!

Skip to:zur Hauptnavigation,zum Inhaltsbereich,zur Suche

Structure of the statement of financial position

As of September 30, 2012, the LANXESS Group had total assets of €6,965 million, up €87 million, or 1.3%, from €6,878 million on December 31, 2011. The main reasons for the increase were the higher net working capital and purchases of property, plant and equipment. The decrease in liquid assets had the opposite effect.

Non-current assets rose by €110 million to €3,599 million. The intangible assets and property, plant and equipment included in this figure increased by €149 million to €3,201 million. Cash outflows for purchases of property, plant, equipment and intangible assets, at €381 million, were well above the figure of €325 million as of September 30, 2011 on account of our targeted growth strategy. Depreciation and amortization in the first nine months totaled €276 million, compared with €233 million in the prior-year period. The first-time consolidation of Tire Curing Bladders, LLC, Little Rock, United States, which was acquired in the first quarter of 2012, and Bond-Laminates GmbH, Brilon, Germany, which was acquired in the quarter under review, also had an impact on non-current assets, leading to additions in the double-digit million range. The increase in the carrying amount of investments accounted for using the equity method was chiefly attributable to the positive earnings of Currenta GmbH & Co. OHG and LANXESS-TSRC (Nantong) Chemical Industrial Co., Ltd., China, in the reporting period. The change in investments in other affiliated companies was partly due to the purchase of a strategic minority interest in BioAmber, Inc., Minneapolis, United States, in the first quarter of 2012 and the mark-to-market valuation of the interest in Gevo Inc., Englewood, United States, in light of the recent development of its share price. The ratio of non-current assets to total assets was 51.7%, up slightly from 50.7% on December 31, 2011.

Current assets amounted to €3,366 million, down €23 million, or 0.7%, from December 31, 2011. Inventories rose by €215 million to €1,601 million compared to year end 2011. This was slightly above their level at the reporting date for the first half of the year and is attributable to the fact that the declining demand outweighed an expected decrease in inventories for scheduled maintenance shutdowns. The balance of cash and cash equivalents and near-cash assets decreased by a substantial €226 million to €302 million, largely as a result of the scheduled redemption of the Euro Benchmark Bond issued in 2005. The ratio of current assets to total assets was 48.3% against 49.3% as of December 31, 2011.

The LANXESS Group has significant internally generated intangible assets that are not reflected in the statement of financial position due to accounting rules. These include the brand equity of LANXESS and the value of the Group’s other brands. A variety of measures were deployed in the reporting period to continually enhance these assets. These measures contributed to the continued success in positioning the business units in the market.

Our established relationships with customers and suppliers also constitute a significant intangible asset, which cannot, however, be reflected in the statement of financial position. These long-standing partnerships with customers and suppliers, built on trust and consistently high product quality, enable us to firmly adhere to our price-before-volume strategy. Our specific competence in technology and innovation, also a valuable asset, is rooted in our specific knowledge in the areas of research and development and custom manufacturing. In this way we generate significant added value for our customers.

Our commercial success is also founded on the knowledge and experience of our employees. In addition, we have sophisticated production and business processes that create competitive advantages for us in the relevant markets.

Equity grew by €239 million, or 11.5%, compared with December 31, 2011, to €2,313 million, predominantly due to the net income of €463 million for the first nine months of the year. The principal offsetting items were negative effects in other equity components from the development of pension obligations. The ratio of equity to the Group’s total assets reached 33.2% as of September 30, 2012, against 30.2% as of December 31, 2011.

Non-current liabilities grew by €392 million to €3,107 million as of September 30, 2012. In addition to the three-year CNH 500 million (roughly €60 million) Chinese off-shore renminbi bond that we placed in the first quarter of 2012, we issued two further bonds with a volume of €100 million each and maturities of 10 and 15 years, respectively. The main reason for the €200 million increase in pension provisions to €879 million was the change in the discount rates used for measurement due to the fall in market rates of interest in Germany. The ratio of non-current liabilities to total assets amounted to 44.6%, against 39.5% as of December 31, 2011.

Current liabilities came to €1,545 million, down by €544 million, or 26.0%, from December 31, 2011. The decrease resulted mainly from the scheduled redemption of the Euro Benchmark Bond issued in 2005. In addition, trade payables declined by €112 million to €654 million due to the slight decrease in manufacturing activity. The ratio of current liabilities to total assets amounted to 22.2% as of September 30, 2012, against 30.3% as of year end 2011.

Service