- Sales decline due to lower volumes and prices
- Margins improve thanks to “value over volume” pricing strategy and product shortages in Petrochemicals, especially in Europe
- Higher earnings in Petrochemicals and Intermediates
3rd Quarter 2009
Third-quarter sales in the Chemicals segment declined compared with the same period of 2008 due to lower volumes and prices (volumes –11%, prices –24%, portfolio 0%, currencies 1%). Income from operations before special items, however, was almost at the previous year’s level. This was due to higher margins resulting from product shortages in some business areas and our “value over volume” pricing strategy. Our measures to cut costs had a positive effect. Compared with the second quarter of 2009, sales and earnings increased in all divisions.
Inorganics
In the Inorganics division, falling prices and volumes led to lower sales in almost all business areas. Despite strict cost discipline, earnings declined compared with the strong third quarter of 2008 due to reduced demand and continued low margins for ammonia and methanol. Demand increased sequentially, in particular for electronic chemicals, inorganic salts and specialties.
Petrochemicals
Sales fell, primarily due to lower prices. Plant shutdowns throughout the industry led to shortages of some products, such as olefins, acrylic acid and butadiene, especially in Europe. As a result, we were able to implement price increases and improve margins compared with the second quarter. Our cost discipline also contributed to an increase in earnings compared with the same quarter of 2008. However, the third quarter of 2008 was negatively impacted by the effects of hurricanes in the United States.
Intermediates
Demand from the textiles, coatings and plastics industries was weaker than in the third quarter of 2008. Combined with a decline in prices, this resulted in lower sales. After a weak start to the year and a slight improvement in the second quarter, demand picked up in the third quarter, in particular in Asia. Earnings were higher than in the third quarter of 2008; this was primarily due to improved margins in all product areas and measures to cut costs.
 Download ( xls, 18 kB) |
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Segment data (million €) |
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|
|
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|
|
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|---|---|---|---|---|---|---|---|
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|
3rd Quarter |
|
January – September | ||||
|
|
2009 |
2008 |
Change in % |
|
2009 |
2008 |
Change in % |
|
Sales to third parties |
2,000 |
3,033 |
(34) |
|
5,365 |
8,877 |
(40) |
|
Thereof Inorganics |
262 |
379 |
(31) |
|
720 |
1,051 |
(31) |
|
Petrochemicals |
1,238 |
2,003 |
(38) |
|
3,275 |
5,844 |
(44) |
|
Intermediates |
500 |
651 |
(23) |
|
1,370 |
1,982 |
(31) |
|
Income from operations before depreciation and amortization (EBITDA) |
527 |
558 |
(6) |
|
1,184 |
1,762 |
(33) |
|
Income from operations (EBIT) before special items |
364 |
401 |
(9) |
|
706 |
1,310 |
(46) |
|
Income from operations (EBIT) |
364 |
401 |
(9) |
|
705 |
1,310 |
(46) |
|
Assets |
5,918 |
7,244 |
(18) |
|
– |
– |
– |
|
Research expenses |
32 |
38 |
(16) |
|
98 |
110 |
(11) |
|
Additions to property, plant and equipment and intangible assets |
117 |
147 |
(20) |
|
330 |
421 |
(22) |
