Advanced Intermediates

Advanced Intermediates
    
  Q2 2013 Q2 2014 Change H1 2013 H1 2014 Change
  € million Margin
 %
€ million Margin
 %
% € million Margin
 %
€ million Margin
 %
%
           
Sales 393   403   2.5 826   822   (0.5)
EBITDA pre exceptionals 74 18.8 73 18.1 (1.4) 145 17.6 145 17.6 0.0
EBITDA 78 19.8 72 17.9 (7.7) 149 18.0 143 17.4 (4.0)
Operating result (EBIT) pre exceptionals 55 14.0 52 12.9 (5.5) 109 13.2 101 12.3 (7.3)
Operating result (EBIT) 59 15.0 51 12.7 (13.6) 113 13.7 99 12.0 (12.4)
Cash outflows for capital expenditures 23   20   (13.0) 42   39   (7.1)
Depreciation and amortization 19   21   10.5 36   44   22.2
Employees as of June 30
(previous year: as of Dec. 31)
2,854   2,811   (1.5) 2,854   2,811   (1.5)
   

Sales in our Advanced Intermediates segment rose by 2.5% in the second quarter of 2014 to €403 million. While selling price adjustments necessitated by a decline in raw material prices resulted in a negative price effect of 3.3%, volumes were up by 7.9% against the prior-year quarter. Sales were diminished by negative currency effects of 2.1%.

Selling prices in the segment’s two business units were below the level of the prior-year quarter, while volumes moved substantially higher in some cases. The demand for agrochemicals and for products from the integrated aromatics network developed nicely. Currency effects had a negative impact on the Advanced Industrial Intermediates and Saltigo business units. The segment posted higher sales in the North America, Germany and EMEA (excluding Germany) regions, while business was down in Latin America and Asia-Pacific particularly for currency reasons.

EBITDA pre exceptionals for the Advanced Intermediates segment was nearly level with the prior-year period at €73 million. Earnings were improved by higher volumes and lower raw material costs but held back by the adjustment of selling prices, increases in manufacturing costs and exchange rate developments. The EBITDA margin pre exceptionals declined slightly to 18.1% from the high prior-year level of 18.8%.

The Advanced Intermediates segment generated half-year sales of €822 million, which was nearly at the level of the previous year with a slight drop of 0.5%. Selling price adjustments prompted by lower raw material costs resulted in a negative price effect of 3.6% that was exacerbated by a 1.7% negative currency effect. This development was nearly offset by good demand for agrochemicals and for products from the integrated aromatics network, resulting in a volume increase of 4.8%.

The segment achieved EBITDA pre exceptionals of €145 million in the first half of 2014, which was level with the prior-year period. The EBITDA margin pre exceptionals was unchanged at 17.6%.

The segment had exceptional items of €1 million in the second quarter and €2 million in the first half of 2014, with the entire amount impacting EBITDA. These related to measures within the Advance program. The exceptional income in the same periods of the previous year related to income from the reversal of provisions for the realignment of the Saltigo business unit.