Chemicals 2nd Quarter 2018 Sales in the Chemicals segment slightly exceeded the figure for the prior-year quarter. This was the result of higher prices, especially in the Monomers and Intermediates divisions, as well as volumes growth. By contrast, sales were negatively impacted by currency effects, primarily relating to the U.S. dollar. Income from operations (EBIT) before special items declined slightly compared with the second quarter of 2017. This was mainly due to significantly higher fixed costs as a result of scheduled and unscheduled plant turnarounds. Factors influencing sales, Chemicals2nd quarter 2018 Petrochemicals In the Petrochemicals division, we recorded slight sales growth compared with the prior-year quarter. This was driven by higher volumes, particularly in Europe. Prices rose slightly overall, but declined for steam cracker products in North America. Sales were weighed down by negative currency effects. EBIT before special items was considerably below the strong figure for the second quarter of 2017, mainly as a result of lower margins and higher fixed costs. Steam cracker margins declined significantly in all regions, especially in North America. This could not be offset by higher margins for oxo alcohols and plasticizers, primarily in Europe and North America, as well as for acrylic monomers in Europe in particular. Fixed costs rose significantly due to higher expenses for service and maintenance as well as for catalysts. Monomers We slightly improved sales in the Monomers division as against the second quarter of 2017. This was due to higher prices, particularly for isocyanates. Negative currency effects and lower sales volumes had an offsetting effect. EBIT before special items grew slightly year on year on the back of higher margins. Fixed costs were significantly higher, primarily from maintenance measures. Intermediates The Intermediates division considerably increased its sales compared with the second quarter of 2017. This was attributable to higher sales volumes of acetylenics and carbonyl derivatives in particular, as well as to higher prices in all regions, especially for acids and polyalcohols. Currency effects had a negative impact on sales. EBIT before special items rose considerably as a result of improved margins and volumes growth. (XLS:) Download Segment data Chemicals (million €) 2nd quarter 1st half 2018 2017 Change in % 2018 2017 Change in % 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 4,132 4,045 2 8,418 8,150 3 of which Petrochemicals 1,593 1,580 1 3,372 3,234 4 Monomers 1,731 1,708 1 3,454 3,407 1 Intermediates 808 757 7 1,592 1,509 6 Income from operations before depreciation and amortization (EBITDA) 1,330 1,385 (4) 2,716 2,624 4 Amortization and depreciation1 266 266 – 526 531 (1) Income from operations (EBIT) 1,064 1,119 (5) 2,190 2,093 5 Special items (10) (1) . (18) 15 . EBIT before special items 1,074 1,120 (4) 2,208 2,078 6 Assets (June 30) 13,294 12,892 3 13,294 12,892 3 Investments including acquisitions2 279 230 21 470 413 14 Research and development expenses 30 31 (3) 61 60 2 back next
