Chemicals

Q3 2019

In the Chemicals segment, sales in both divisions were considerably lower than in the prior-year quarter, but especially in the Petrochemicals division.

The sales decrease was due on the one hand to lower volumes in both divisions, primarily in the Petrochemicals division due to the scheduled turnarounds of our steam crackers in Port Arthur, Texas, and Europe, and significantly lower capacity utilization of the condensate splitter in Port Arthur, Texas. Volumes also declined in the Intermediates division, particularly of amines and of butanediol and derivatives. On the other hand, the segment’s sales were reduced by lower prices, especially in the Petrochemicals division. This was primarily attributable to lower raw materials prices, in particular for naphtha in Europe and for butane and ethane in North America. Prices likewise declined in the Intermediates division, especially in the acids and polyalcohols business. Positive currency effects had an offsetting effect in both divisions.

Income from operations (EBIT) before special items in both divisions decreased considerably compared with the third quarter of 2018. In the Petrochemicals division, this was attributable to lower sales volumes and lower margins for styrene monomers and monoethylene glycols in Europe, as well as for steam cracker products and monoethylene glycols in Asia Pacific. Higher fixed costs from the scheduled turnarounds of our steam crackers also contributed to the decrease in EBIT before special items. EBIT before special items declined considerably in the Intermediates division as well, due to lower volumes and margins.