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Last Update: 03/11/2010
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Part of the audited Consolidated Financial Statements and Management´s Analysis

Business development

Excellence in the Verbund, technology and cost leadership

Sales by division

Chemicals – Sales by division (pie chart)

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

In 2009, sales to third parties fell sharply to €7,515 million, a decline of €3,656 million compared with the previous year (volumes –12%, prices –22%, portfolio 0%, currencies 1%). Income from operations also declined by €634 million to €735 million. In particular, sales and earnings were negatively affected by the dramatic drop in demand at the end of 2008 and in the first quarter of 2009, which led us to adjust production and reduce our inventories. Over the course of the year, our business recovered slowly but steadily. We accelerated our activities to lower costs and increase efficiency.

In 2010, we expect a slight recovery in demand. However, there will be increased pressure on margins due to additional capacities, especially for cracker products. As sales increase, earnings are expected to rise significantly.

Sales Chemicals
(million €)

Chemicals – Sales (bar chart)

Income from operations Chemicals
(million €)

Chemicals – Income from operations (bar chart)

Factors influencing sales – Chemicals

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

 

 

 

 

2009

2008

Change in %

Sales to third parties

7,515

11,171

(32.7)

Thereof Inorganics

983

1,388

(29.2)

Petrochemicals

4,664

7,271

(35.9)

Intermediates

1,868

2,512

(25.6)

Intersegmental transfers

3,564

5,182

(31.2)

Sales including intersegmental transfers

11,079

16,353

(32.3)

Income from operations before depreciation and amortization (EBITDA)

1,571

2,053

(23.5)

EBITDA as a percentage of sales

20.9

18.4

Income from operations (EBIT) before special items

1,021

1,414

(27.8)

Income from operations (EBIT)

735

1,369

(46.3)

Income from operations (EBIT) after cost of capital

185

696

(73.4)

Assets

5,688

6,121

(7.1)

Research and development expenses

129

146

(11.6)

Additions to property, plant and equipment and intangible assets

482

601

(19.8)

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