Business Review

Chemicals segment

  • Sales growth of 1% to €16,501 million due to higher prices
  • EBIT before special items declines 20% to €3,386 million primarily as a result of lower margins, impacted by low water level of Rhine River

At €16,501 million, sales to third parties in the Chemicals segment in 2018 were €170 million above the prior-year figure (volumes –1%, prices 4%, portfolio 0%, currencies –2%). This was due to higher prices overall in all divisions, especially in Petrochemicals. By contrast, the Monomers division saw a decrease in isocyanate prices. Currency effects had a negative impact on sales. Sales volumes were also slightly below the prior-year level. We increased volumes overall in the Petrochemicals and Intermediates divisions despite the low water levels on the Rhine River, while sales volumes declined considerably in the Monomers division.

Income from operations (EBIT) before special items declined by €847 million to €3,386 million. This was mainly attributable to lower margins for isocyanates in the Monomers division and steam cracker products in the Petrochemicals division. Stronger margins in the Intermediates division were unable to compensate for this. Plant shutdowns and the low water levels on the Rhine River in the second half of 2018 also contributed to the decline in earnings. EBIT declined by €848 million to €3,360 million. Overall, special items did not have a substantial impact.

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Segment data – Chemicals (Million €)

 

 

 

2018

2017

+/–

1

Amortization of intangible assets and depreciation of property, plant and equipment (including impairments and reversals of impairments)

2

Additions to intangible assets and property, plant and equipment

Sales to third parties

 

 

16,501

16,331

1%

of which Petrochemicals

 

 

6,904

6,389

8%

Monomers

 

 

6,464

6,963

(7%)

Intermediates

 

 

3,133

2,979

5%

Intersegment transfers

 

 

6,105

6,063

1%

Sales including intersegment transfers

 

 

22,606

22,394

1%

Income from operations before depreciation and amortization (EBITDA)

 

 

4,432

5,374

(18%)

EBITDA margin

 

%

26.9

32.9

–

Depreciation and amortization1

 

 

1,072

1,166

(8%)

Income from operations (EBIT)

 

 

3,360

4,208

(20%)

Special items

 

 

(26)

(25)

(4%)

EBIT before special items

 

 

3,386

4,233

(20%)

EBIT after cost of capital

 

 

2,030

2,895

(30%)

Assets

 

 

13,264

13,233

0%

Investments including acquisitions2

 

 

1,325

1,149

15%

Research and development expenses

 

 

129

128

1%