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 % |
||||
|---|---|---|---|---|---|---|---|---|---|
|
|||||||||
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) |
||||