1st Quarter 2012
- Europe: sales increase as a result of higher prices and volumes; earnings improve, thanks in particular to considerably higher contribution from Oil & Gas
- North America: sales at previous first-quarter level; earnings decline primarily as a result of lower contribution from Chemicals and Plastics segments
- Asia Pacific: sales decrease, due in part to contribution of styrenics activities to Styrolution joint venture; earnings decline, particularly as a result of weaker margins for basic products
- South America, Africa, Middle East: sales grow, partly owing to strong business with crop protection products; earnings decline, mainly as a result of lower contribution from Functional Solutions segment
Due to higher prices and volumes, sales in Europe were up 12% compared with the same quarter of the previous year. The Oil & Gas segment posted a significant increase in sales as a result of increased production and sales volumes as well as higher crude oil and gas prices. The season started well in the Agricultural Solutions segment. Income from operations before special items rose by €32 million to €1,864 million, mainly due to significantly improved earnings in the Oil & Gas segment compared with the first quarter of 2011.
Sales in North America declined by 4% in U.S. dollars, remaining at the level of the previous first quarter in euro terms. The optimization of our supply chain for steam cracker products in the third quarter of 2011 led to a decline in volumes. Higher sales prices and positive currency effects offset this decline. We posted a significant sales increase in the Performance Products segment. At €370 million, earnings were €23 million below the level of the previous first quarter. This was due to lower earnings contributions from the Chemicals and Plastics segments resulting from lower margins and the scheduled shutdown of several plants in Geismar, Louisiana.
Sales in the Asia Pacific region decreased by 8% in local-currency terms and by 3% in euro terms. Along with lower sales prices, particularly in the Chemicals segment, the contribution of our styrenics activities to the Styrolution joint venture was largely responsible for this development. Decreased volumes, especially in the Plastics segment, also contributed to the decline in sales. Currency effects, however, had a positive impact. Especially as a result of weaker margins for basic products, earnings were reduced by €197 million to €219 million.
In South America, Africa, Middle East, sales were up year-on-year by 4% in both local-currency as well as euro terms. Our business with crop protection products was very successful. We were also able to significantly increase sales in the Oil & Gas segment thanks to higher sales prices. Earnings were reduced by €12 million to €79 million, primarily due to the lower contribution from the Functional Solutions segment.
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Overview of regions (million €) |
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Sales |
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Sales |
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EBIT | ||||||
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2012 |
2011 |
Change in % |
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2012 |
2011 |
Change in % |
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2012 |
2011 |
Change in % |
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1st Quarter |
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Europe |
12,440 |
11,150 |
12 |
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11,939 |
10,656 |
12 |
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1,864 |
1,832 |
2 |
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Thereof Germany |
8,971 |
7,919 |
13 |
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4,430 |
4,042 |
10 |
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1,298 |
1,214 |
7 |
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North America |
3,847 |
3,851 |
. |
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3,752 |
3,676 |
2 |
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370 |
393 |
(6) |
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Asia Pacific |
3,290 |
3,389 |
(3) |
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3,514 |
3,682 |
(5) |
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219 |
416 |
(47) |
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South America, Africa, Middle East |
1,013 |
971 |
4 |
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1,385 |
1,347 |
3 |
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79 |
91 |
(13) |
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20,590 |
19,361 |
6 |
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20,590 |
19,361 |
6 |
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2,532 |
2,732 |
(7) |
