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LANXESS Stock

The price of our stock continued to decline in the second quarter. It came under increasing pressure especially toward the end of the reporting period, dropping below €50 in June and closing the quarter at €46.28.

Germany’s lead index DAX started the second quarter with losses. In April, it fell below 7,500 points to its lowest level for the year so far. A sustained recovery in the DAX set in at the end of April, pushing the index back up over 8,000 points. In late May, it exceeded 8,500 points for the first time since its inception. Through June, the DAX was forced to give back some of its gains and closed on June 28 at 7,959 points. Although below the 8,000-point mark, this still represents an increase of 2.1% for the quarter. After reaching a high of more than 700 points, LANXESS’s benchmark index, the Dow Jones STOXX 600 ChemicalsSM, gave back its gains in late June and ended the quarter at 670 points, a decrease of 1.9%.

The considerable losses on the German stock markets at the start of the quarter were due especially to the skeptical outlook for economic performance in the eurozone. From late April, however, positive effects again predominated. The DAX rallied on the European Central Bank’s rate cut, which reduced the key lending rate to an all-time low, as well as on the hope for an end to the government crisis in Italy. In June, statements by U.S. Federal Reserve Chairman Ben Bernanke were interpreted as a premature tightening of U.S. monetary policy, which caused renewed uncertainty in the markets and exerted pressure on the world’s stock indices. The indices only rebounded in the final trading days of the quarter, when Bernanke confirmed the Fed’s adherence to its low interest rate policy and favorable U.S. economic data were released. However, the news came too late to push Germany’s blue-chip DAX, for example, back above 8,000 points.

The price of LANXESS stock was affected by the general sentiment on the equity markets in the early part of the second quarter. Then, starting in May, our own corporate newsflow had an increasing impact on the development of the share price. Against the backdrop of weak demand from the tire and automotive industries, LANXESS reported lower sales and earnings for the first quarter of 2013 compared to the prior year and also projected a restrained performance going forward. In addition, it forecast a difficult year overall in fiscal 2013 with expected earnings below €1 billion and predicted second-quarter EBITDA pre exceptionals in the range of €174 million to €220 million.

Once it was confirmed that the difficult market environment would continue to affect business, the stock price suffered significantly and fell below the €50 mark in June. The general market uncertainty described above also had an effect. On June 27, our share price reached its low for the period of €44.91 in the course of trading, before closing the quarter on the next day at €46.28. Our share was thus down 16.3% for the period and recorded a weaker performance than the DAX and DJ STOXX 600 ChemicalsSM in the second quarter.

A summary of other developments at LANXESS during the second quarter is provided in the “Highlights” section.

LANXESS Stock
         
    Q4 2012 Q1 2013 Q2 2013
         
Capital stock/no. of shares 1) €/no. of shares 83,202,670 83,202,670 83,202,670
Market capitalization 1) € billion 5.51 4.60 3.85
High/low for the period 68.83/59.33 68.59/54.19 59.15/44.91
Closing price 1) 66.27 55.32 46.28
Trading volume million shares 33.257 50.561 61.358
Earnings per share 0.62 0.30 0.11
1) End of quarter: Q4: December 31, 2012; Q1: March 31, 2013; Q2: June 30, 2013
Stock Performance vs. Indices
Chart: Performance of the Lanxess Stock vs. Indices
Analyst Recommendations as of April 30, 2013
Chart: Analyst Recommendations as of April 30, 2013
Analyst Recommendations as of July 20, 2013
Chart: Analyst Recommendations as of July 20, 2013

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