Chemicals business sector

The Chemicals business sector’s two divisions are Liquid Crystals and Performance & Life Science Chemicals. This sector generated 28% of the Group’s total revenues and 48% of the operating result (without Corporate and Other). Both the Liquid Crystals division and the Pigments business within the Performance & Life Science Chemicals division have completely recovered from the downturns they experienced in last year’s financial crisis.

Consequently, the Chemicals business sector’s first-quarter total revenues jumped 34% to EUR 585 million. The gross margin improved by 75% to EUR 353 million as the business sector returned to full utilization of production capacity and inventories were reduced. The operating result was EUR 167 million in the first quarter of 2010 compared to an extremely low EUR 37 million in the year-ago quarter.

The German Chemical Industry Association (VCI) said in March that for 2010 it expected German chemical production to increase by 5.0% and sales of German chemicals to rise by 6.0%.