Advanced Intermediates

Overview of Key Data
  2012 2013 Change
  € million Margin % € million Margin % %
Sales 1,674   1,647   (1.6)
EBITDA pre exceptionals 305 18.2 286 17.4 (6.2)
EBITDA 311 18.6 287 17.4 (7.7)
Operating result (EBIT) pre exceptionals 238 14.2 209 12.7 (12.2)
Operating result (EBIT) 244 14.6 210 12.8 (13.9)
Cash outflows for capital expenditures 92   96   4.3
Depreciation and amortization 67   77   14.9
Employees as of Dec. 31 2,841   2,854   0.5

Our Advanced Intermediates segment recorded sales of €1,647 million in 2013, slightly below the prior-year level. Selling price increases generated a positive price effect of 1.0% that was offset by a negative volume effect of almost the same magnitude. Exchange rates also had a negative effect on sales of 1.5%.

Both of the segment’s business units were able to impose higher selling prices. Whereas the Saltigo business unit also profited from a slight increase in demand, volumes in the Advanced Industrial Intermediates business unit were just below the prior-year level. Both business units saw stable demand for agrochemicals in particular but were hampered by negative exchange rate movements. Sales in Latin America and Asia-Pacific decreased. By contrast, Germany and EMEA (excluding Germany) saw a constant trend and business performance in North America was gratifying.

EBITDA and EBITDA Margin Pre Exceptionals
Graphic: Advanced Intermediates - EBITDA and EBITDA Margin Pre Exceptionals

EBITDA pre exceptionals in the Advanced Intermediates segment decreased by €19 million, or 6.2%, to €286 million. Higher selling prices and relief provided by lower raw material costs were counteracted by lower volumes, especially in the Advanced Industrial Intermediates business unit. Performance was additionally hampered by higher production costs and negative exchange rate trends. The EBITDA margin pre exceptionals fell from 18.2% to 17.4%.

Exceptional income in the reporting year amounted to €1 million. The reversal of provisions for the realignment of the Saltigo business unit was offset by expenses for further measures relating to the Advance program.