Specialty Chemicals – Overview

• Revenue down 12 percent, due to Chemicals Pakistan divestment and 5 percent lower volumes
• Operating income down 21 percent to €121 million, due to unfavorable market conditions and production issues in the value chain
• Performance improvement programs are ongoing in all businesses

Revenue declined during the quarter, mainly due to divestments and lower volumes in all businesses, particularly in segments such as construction, agriculture and pulp bleaching. A general softening in demand was evident, notably in Europe, although manufacturing also slowed down in China and other high growth markets, impacting global supply chains and adding to the volatility in ordering patterns. Furthermore, the conclusion of value chain issues in Q1 and the exit from the merchant fatty acids business in Boxing, China, had an impact on volume. The lower profitability was mainly due to lower volumes and production outages, partly mitigated by cost and productivity initiatives.

Revenue development Q2 2013