Fiscal 2007

The worldwide operations of the Evonik Degussa Group developed very satisfactorily as a result of positive global economic conditions. We generated organic sales growth of 9 percent. Thanks to strong global demand, we were able to recoup at least some of the rise in raw material costs by raising prices to customers. Overall, sales improved by 1 percent as a result of currency and consolidation effects and the transfer of the service functions.  

The operating result (EBIT before non-operating result) improved 28 percent to €1,125 million. This mainly reflects higher demand, improved selling prices and successful restructuring. Besides, the year-back figure contained expenses for the administrative and service functions that were transferred at the start of 2007.  

In 2008 we expect sales to be slightly higher than in 2007, accompanied by a slight improvement in both EBITDA and EBIT. In view of the anticipated improvement in these operating earnings indicators, we expect income before income taxes from our continuing activities to be slightly higher than in 2007.