Comparison of forecast and actual business
For fiscal 2014 we generally prepared for different price trends for the various strategic raw materials and assumed a tendency toward higher procurement costs, particularly for petrochemical raw materials. This assessment was confirmed over the course of the first nine months. The price level for procuring our raw materials climbed compared with the end of 2013.
The development of our business so far was marked by the persistently challenging competitive situation for our synthetic rubber businesses. Our Performance Polymers segment saw sales decline in the first nine months of 2014, mainly due to the adjustment of selling prices. In the Advanced Intermediates segment, the forecasted continuing good demand for agrochemicals was confirmed. Sales of that segment increased year on year in the reporting period. Our Performance Chemicals segment also developed as anticipated, growing sales in the first nine months of 2014 due largely to an expansion of volumes.
EBITDA pre exceptionals in the reporting period was €654 million, and earnings thus rose substantially in the first nine months of 2014 compared with the same period of the previous year. As usual, the guidance we are now issuing for the current year can be found in the Outlook section of this interim management report.
|Comparison of Forecast and Actual Business in 2014|
|Forecast for 2014 in
Annual Report 2013/
Q1 Interim Report
|Forecast for 2014
in H1 Interim Report
Q3 Interim Report
|Business development: Group|
|EBITDA pre exceptionals||€770 – 830 million||€780 – 820 million||9M: €654 million|
|Business development: segments|
|Performance Polymers||Slight improvement in demand in crucial automotive and tire industries; strongest momentum in emerging markets of Asia; continuing intense competition in synthetic rubber market||Muted development in demand; persistently challenging competitive environment for synthetic rubber business; good development in demand in the Chinese economic region||9M: sales (7.6)%|
|Advanced Intermediates||Good demand for agrochemicals; further temporary shutdowns scheduled for 2014||Continuing good demand||9M: sales +1.4%|
|Performance Chemicals||Slight improvement in demand; positive impetus from the construction industry||Unchanged||9M: sales +3.3%|
|Raw material prices||Varying price trends for different strategic raw materials; overall trend toward higher procurement costs, with continuing volatility||Unchanged||Slightly above prior-year level|
|Financial condition: Group|
|Cash outflows for capital expenditures||approx. €600 million||On prior-year level||9M: €374 million|