Business Trends by Region
| Sales by Market | Q1 2006 | Q1 2007 | Change | ||
|---|---|---|---|---|---|
€ million | % of sales |
| % of sales | % | |
EMEA (excluding Germany) | 619 | 33.7 | 590 | 34.5 | (4.7) |
Germany | 417 | 22.7 | 411 | 24.0 | (1.4) |
Americas | 497 | 27.1 | 410 | 24.0 | (17.5) |
Asia-Pacific | 303 | 16.5 | 300 | 17.5 | (1.0) |
| 1,836 | 100.0 | 1,711 | 100.0 | (6.8) |
In the EMEA region (Europe [excluding Germany], Middle East, Africa), the LANXESS Group’s sales fell by 4.7% to €590 million. Adjusted for portfolio changes and currency effects, sales in this region edged up by 1.8%. The Performance Rubber and Chemical Intermediates segments saw sales grow by double-digit percentages, while sales in the Engineering Plastics segment were below the previous year, partly as a result of site consolidations. Eastern European and Middle Eastern markets displayed upward trends, but LANXESS’s sales in some western European countries did not match last year’s levels. The EMEA region accounted for 34.5% of total sales, up from 33.7%.
LANXESS’s sales in Germany slipped by 1.4% to €411 million in the first quarter of 2007, the decrease being entirely due to portfolio changes. Adjusted for this effect, sales rose by 1.5%. The Performance Rubber, Engineering Plastics and Performance Chemicals segments reported above-average growth. Germany’s share of total sales increased from 22.7% to 24.0%.
In the Americas region, LANXESS recorded a 17.5% drop in sales to €410 million. After adjusting for portfolio and currency effects, sales rose by 3.2% compared with the first quarter of 2006. Business in the prior-year quarter was held back by delivery problems experienced by a raw material supplier. Both North and South America contributed to the adjusted sales growth. Whereas sales of the Performance Rubber and Chemical Intermediates segments improved, business in the Engineering Plastics and Performance Chemicals segments was below the same period of last year. The Americas region accounted for 24.0% of total sales, down from 27.1%.
Sales in Asia-Pacific totaled €300 million in the first quarter of 2007, down slightly from the prior-year quarter. Adjusted for currency effects and the activities divested in the previous year, business expanded by a substantial 7.9%. Sales in the Engineering Plastics and Chemical Intermediates segments rose by double-digit percentages, while those of the Performance Rubber and Performance Chemicals segments also exceeded the previous year’s level. This region’s share of total sales rose from 16.5% in the prior-year period to 17.5%.