German chemicals company Lanxess posted its best quarterly results in its history Friday, thanks to surging demand for its products.
Sales rose by almost 7 percent up to 2.5 billion euros ($2.9 billion) in the first quarter of 2018, compared to 2.4 billion euros from the same period last year. Net income surged to 96 million euros, an increase of 23 percent year-on-year. Meanwhile, it said earnings before interest, taxes, depreciation and amortization (EBITDA) for this year is expected to rise by up to 10 percent in comparison to last year's EBITDA of 925 million euros.
Lanxess said that its takeover of U.S. chemicals maker Chemtura helped boost the firm's record breaking start to 2018.
The chemical maker's latest earnings will provide a timely boost for billionaire investor Warren Buffett. The Berkshire Hathaway CEO acquired a small 3 percent stake in the company in May 2017, worth 180 million euros at that time, according to Reuters.
"We have made a dynamic start to the new fiscal year and improved our profitability again. This shows that our efforts to move the company forwards are increasingly paying off," said Matthias Zachert, chairman of the Lanxess board of management, in a statement.