* Splits rubber units off into new legal entity
* Lays ground for alliance with strategic partner
* Now sees 840-880 mln euros in adj 2015 EBITDA
* Shares indicated 1.3 percent higher (Adds details on overcapacity in rubber)
By Ludwig Burger
FRANKFURT, Aug 6 (Reuters) – Germany specialty chemicals group Lanxess lifted its full-year earnings outlook for the second time and said it would split its synthetic rubber business off into a separate legal entity while it continues to look for a strategic partner.
It now expects adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of 840-880 million euros ($917-961 million) this year, compared with a previous target range of 820-860 million euros.
Earnings prospects brightened because of lower raw material costs, a strong U.S. dollar and recent cost-cutting measures.
The group’s entire rubber business, comprising standard and high-performance tyre rubbers and materials for windscreen wipers, brake hoses, sealant and transmission belts, will be split off into the new legal entity.
Over a year ago, it unveiled it was on the lookout for strategic partner for its rubber division, which is suffering from oversupply in the industry. Lanxess has also said previously that a deal may cover only parts of the business.
Lanxess reported last month that second-quarter adjusted EBITDA rose 13 percent 270 million euros, above market expectations.
($1 = 0.9158 euros) (Reporting by Ludwig Burger; Editing by Christoph Steitz and Maria Sheahan)
