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Last Update: 03/12/2009
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Part of the audited Consolidated Financial Statements and Management´s Analysis

Segment Chemicals - Business development

Excellence in the Verbund, technology and cost leadership

Sales by division (million €)

Sales by division (million €) – Chemicals (pie chart)

The Chemicals segment consists of the Inorganics, Petrochemicals and Intermediates divisions. At our integrated production facilities – our Verbund – in Europe, Asia and North America we produce a broad range of basic chemicals and higher value products for our internal and external customers.

In 2008, we increased sales to third parties by €966 million to €10,324 million (volumes 2%, prices 13%, currencies –5%). Income from operations declined to €1,376 million. Earnings were particularly impacted by the drastic decline in demand in the fourth quarter. Generally high raw material costs and declining margins for cracker products also contributed to this decline. In the fourth quarter, production was adjusted to the considerably lower demand and to reduce inventories.

For 2009, we expect sales to decrease and income from operations to decline significantly compared with 2008, due to lower demand in many of our customer industries and stronger competition from the Middle East and Asia.

Sales Chemicals (million €)

Sales Chemicals (million €) (bar chart)

Income from operations Chemicals (million €)

Income from operations Chemicals (million €) (bar chart)

Factors influencing sales – Chemicals

Factors influencing sales – Chemicals (bar chart)
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Segment data Chemicals (million €)

 

 

 

 

2008

2007

Change in %

Sales to third parties

10,324

9,358

10.3

Thereof Inorganics

1,384

1,192

16.1

Petrochemicals

6,428

5,696

12.9

Intermediates

2,512

2,470

1.7

Intersegmental transfers

5,503

4,829

14.0

Sales including intersegmental transfers

15,827

14,187

11.6

Income from operations before depreciation and amortization (EBITDA)

1,988

2,416

(17.7)

Income from operations (EBIT)
before special items

1,421

1,889

(24.8)

Income from operations (EBIT)

1,376

1,903

(27.7)

Income from operations (EBIT)
after cost of capital

740

1,305

(43.3)

EBITDA in percent of sales

19.3

25.8

Assets

5,455

5,971

(8.6)

Research and development expenses

125

123

1.6

Additions to property, plant and equipment
and intangible assets

528

668

(21.0)

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