Business review

Chemicals segment

  • Sales decrease by 8% to €13,461 million, due to lower prices
  • Decline in EBIT before special items by 4% to €2,064 million mainly owing to higher fixed costs

In the Chemicals segment, sales to third parties decreased by €1,209 million in 2016 to €13,461 million (volumes 3%, prices –11%, portfolio 0%, currencies 0%). The reason for this were lower prices as a result of slumped raw material prices, especially in the Petrochemicals division. We were able to raise our volumes overall.

Income from operations (EBIT) before special items fell by €92 million to €2,064 million, mainly because of higher fixed costs from new production plant startups. Lower margins in the Petrochemicals and Intermediates divisions also dampened EBIT before special items; higher margins for isocyanates in the Monomers division helped slow the decline. EBIT decreased by €148 million to €1,983 million. Special charges came mainly from the overhaul of caprolactam production in Europe.

Segment data (million €)

 

 

 

2016

2015

Change in %

1

Amortization of intangible assets and depreciation of property, plant and equipment (including impairments and write-ups)

2

Additions to intangible assets and property, plant and equipment (including acquisitions)

Sales to third parties

 

 

13,461

14,670

(8)

Thereof Petrochemicals

 

 

5,035

5,728

(12)

Monomers

 

 

5,745

6,093

(6)

Intermediates

 

 

2,681

2,849

(6)

Intersegmental transfers

 

 

4,836

5,300

(9)

Sales including intersegmental transfers

 

 

18,297

19,970

(8)

Income from operations before depreciation and amortization (EBITDA)

 

 

3,169

3,090

3

EBITDA margin

 

%

23.5

21.1

Amortization and depreciation1

 

 

1,186

959

24

Income from operations (EBIT)

 

 

1,983

2,131

(7)

Special items

 

 

(81)

(25)

.

EBIT before special items

 

 

2,064

2,156

(4)

EBIT after cost of capital

 

 

686

692

(1)

Assets

 

 

13,486

12,823

5

Investments2

 

 

1,213

1,859

(35)

Research and development expenses

 

 

182

207

(12)