Business review

Chemicals

At €16,968 million, sales to third parties in the Chemicals segment in 2014 matched the level of the previous year. Higher sales volumes offset lower prices (volumes 3%, prices −3%, currencies 0%). Income from operations before special items grew by €185 million to €2,367 million. This was due to considerable earnings increases in the Petrochemicals and Intermediates divisions, which more than compensated for the Monomers division’s margin-related decline. Income from operations rose by €310 million to €2,396 million. Special income arose from the divestiture of our shares in the Ellba Eastern Private Ltd. joint operation in Singapore. Special charges included the impairment of a plant.

Sales are likely to decrease slightly in 2015. Substantially lower oil and raw material prices will lead to price declines in some business areas. Anticipated volumes growth in all divisions – partly from the startup of new plants – will not be able to fully compensate for this. We foresee higher volumes in the Monomers division, especially of isocyanates and polyamide-6 extrusion polymers. In the Intermediates division, we particularly expect sales volumes to rise in the amines and polyalcohols businesses. Overall, income from operations before special items is likely to decline slightly due to expenses for starting operations at several plants.

Segment data (in million €)

 

 

 

2014

2013

Change in %

Sales to third parties

 

 

16,968

16,994

0

Thereof Petrochemicals

 

 

7,832

7,785

1

Monomers

 

 

6,337

6,385

(1)

Intermediates

 

 

2,799

2,824

(1)

Intersegmental transfers

 

 

6,135

6,388

(4)

Sales including intersegmental transfers

 

 

23,103

23,382

(1)

Income from operations before depreciation and amortization (EBITDA)

 

 

3,212

2,956

9

EBITDA margin

 

%

18.9

17.4

Income from operations (EBIT) before special items

 

 

2,367

2,182

8

Income from operations (EBIT)

 

 

2,396

2,086

15

Income from operations (EBIT) after cost of capital

 

 

1,095

917

19

Assets

 

 

12,498

10,908

15

Research expenses

 

 

185

178

4

Additions to property, plant and equipment and intangible assets

 

 

2,085

1,958

6