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
Actual
Q3 Interim Report
9M 2014
       
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