Download - Evonik Industries

Consolidated interim financial statements / notes
as of June 30, 2009
(4) Performance of the business areas
Chemicals Business Area
Following a weak start to the year, demand picked up slightly in the second quarter. However, there is not yet
any sign of a turnaround, merely an improvement in demand from certain industries and regions. Overall,
sales slipped 22 percent to €4,560 million in the first six months of 2009.
EBITDA dropped 33 percent to €628 million. The principal downside factor affecting earnings in this
business area was the sharp drop in demand, which led to far lower capacity utilization. We responded
promptly to the reduction in output by reducing overtime and vacation credits and introducing short-time
working. As of June 30, 2009 there were around 2,700 employees working short-time.
Energy Business Area
Sales declined by 15 percent to €1,452 million. The principal reason for this was a reduction of roughly twothirds
in coal prices, which led to lower electricity prices. Moreover, the volume of coal sold declined due to
the cyclically induced reduction in power generation. The Energy Business Area's EBITDA was €199 million,
down 43 percent compared with the first half of the previous year.
Real Estate Business Area
This business area grew sales 4 percent to €184 million. EBITDA was €84 million and thus below the high
prior-year figure of €115 million.
(5) Notes on the segment report
The reporting based on operating segments reflects the Group’s internal organizational and reporting
structure. Evonik’s three business areas are classified as reportable segments in compliance with IFRS 8
“Operating Segments”. The operating activities are bundled in business units within these business areas.
The table provides a reconciliation from the total operating income of the reportable segments to income
before income taxes from the continuing operations:
in € million
1st half
2009
1st half
2008
Total operating income, reportable segments 489 1,059
Total operating income, other operations 27 -5
Corporate Center and corporate activities -112 -171
Consolidation
= Total operating income corporate, other
-2 -8
operations, consolidation
= Total operating income Group, continuing
-87 -184
operations 402 875
Net interest expense -247 -271
Income before income taxes, continuing operations 155 604
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