Advanced Intermediates

Advanced Intermediates
  Q1 2013 Q1 2014 Change
  € million Margin% € million Margin% %
Sales 433   419   (3.2)
EBITDA pre exceptionals 71 16.4 72 17.2 1.4
EBITDA 71 16.4 71 16.9 0.0
Operating result (EBIT) pre exceptionals 54 12.5 49 11.7 (9.3)
Operating result (EBIT) 54 12.5 48 11.5 (11.1)
Cash outflows for capital expenditures 19   19   0.0
Depreciation and amortization 17   23   35.3
Employees as of March 31
(previous year: as of Dec. 31)
2,854   2,827   (0.9)

Sales in our Advanced Intermediates segment receded by 3.2% in the first quarter of 2014, to €419 million. Lower purchase prices for raw materials were passed along to the market, creating a negative price effect of 3.9% that was exacerbated by a 1.4% negative currency effect. This development was not fully offset by the continued good demand for agrochemicals and the resulting positive volume effect of 2.1%.

Selling prices in the Saltigo business unit were at the level of the prior-year quarter, while volumes moved higher. In the Advanced Industrial Intermediates business unit, lower prices for raw materials were passed along to the market in the form of selling price adjustments. Demand was at the level of the prior-year quarter. Exchange rate developments had a negative impact on both of the segment’s business units. Business was down in nearly all regions, with higher sales reported only in the EMEA (excluding Germany) region.

EBITDA pre exceptionals in the Advanced Intermediates segment rose by €1 million against the prior-year quarter to €72 million. While the positive effect of lower raw material costs was offset by selling price adjustments, the growth in volumes led to improved earnings at the segment level. However, earnings were held back by slight increases in manufacturing costs and by exchange rate developments. The EBITDA margin showed a slight improvement against the already high level of the prior-year period, from 16.4% to 17.2%.

There were exceptional items of €1 million in the quarter, with the entire amount impacting EBITDA. These related to measures within the Advance program.