DGAP-Adhoc: LANXESS Aktiengesellschaft: LANXESS increases competitiveness

LANXESS Aktiengesellschaft / Key word(s): Strategic Company
Decision/Restructure of Company

17.09.2013 21:25

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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LANXESS increases competitiveness

Cologne - LANXESS is countering the challenging business environment with a
comprehensive efficiency program. Currently, it is foremost the synthetic
rubber activities that are experiencing a temporary weakness in demand,
increased competition in the market and volatile raw materials prices. As
part of the 'Advance' program, the company therefore plans to reduce costs
and headcount, as well as optimize its portfolio.

LANXESS confirmed the company's full-year guidance for 2013 of EUR 700-800
million EBITDA pre exceptionals, excluding potential inventory
devaluations.

As part of the 'Advance' program, LANXESS is aiming to achieve about EUR
100 million in annual savings from 2015 onward through efficiency
improvements and targeted restructuring. This will lead to a headcount
reduction of about 1,000 employees worldwide by the end of 2015.

The positions will be phased out through a voluntary separation program,
which includes early retirement packages and severance pay. In addition,
the variable compensation for the current business year will be reduced for
those who are eligible. This includes the Board of Management. All measures
are being coordinated with employee representatives.

Restructuring has already been implemented within the Rubber Chemicals
business unit, which is closing a site in South Africa and downsizing its
operations in Belgium. In addition, we will adjust our business operations
globally to reflect the current market situation. LANXESS will also
continue with its proven flexible asset management strategy.

In total, some EUR 150 million in one-off charges will be booked in 2013
and 2014 to cover the 'Advance' program.

LANXESS will maintain its current structure of 14 business units under its
three established segments. At the same time, the company will explore
strategic options for specific non-core businesses.

These non-core activities have combined sales of roughly EUR 500 million,
close to EUR 30 million in EBITDA pre exceptionals, and a headcount of
roughly 1,000.

As part of its portfolio management activities over the mid- to long term,
LANXESS is predominantly targeting acquisitions that will strengthen its
Advanced Intermediates and Performance Chemicals segments and thus further
diversify the Group's structure.

LANXESS will continue to give priority to organic growth. Capital
expenditures have been reduced to roughly EUR 600 million this year, while
at the same time key strategic projects have been implemented. This will
also bring LANXESS closer to the mid-term earnings goal of EUR 1.8 billion
EBITDA pre exceptionals in 2018.

Cologne, September 17, 2013

Forward-Looking Statements.
This news release may contain forward-looking statements based on current
assumptions and forecasts made by LANXESS AG management. Various known and
unknown risks, uncertainties and other factors could lead to material
differences between the actual future results, financial situation,
development or performance of the company and the estimates given here. The
company assumes no liability whatsoever to update these forward-looking
statements or to conform them to future events or developments.

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Language: English
Company: LANXESS Aktiengesellschaft
Kennedyplatz 1
50569 Köln
Germany
Phone: +49 (0)221 8885-0
Fax: +49 (0)221 8885-4944
E-mail: ir@lanxess.com
Internet: www.lanxess.com
ISIN: DE0005470405
WKN: 547040
Indices: DAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart;
Terminbörse EUREX

End of Announcement DGAP News-Service

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