Degussa makes Euro 500 million impairment charge in Fine Chemicals

20-Oct-2003

Due to significant changes in market conditions in the fine chemicals sector, Degussa AG of Dusseldorf, Germany, is making an impairment charge in its fine chemicals Business Unit to the amount of EUR 500 million, effective September 30, 2003. EUR 250 million of this sum is for goodwill from mergers and acquisitions and EUR 250 million is for other intangible assets. The impairment charge, which will be included in the non-operating result for the third quarter of 2003 as a non-recurring effect, is a non-cash item and thus does not impact cash flow. It is being made as a result of impairment testing, that under US GAAP now has to be carried out at least once a year. Reorganization of Fine & industrial chemicals Division activities Degussa is also rearranging the activities of its Fine & Industrial Chemicals Division. As Degussa Management Board Chairman Prof. Utz-Hellmuth Felcht explains, "Now that we have completed integrating all fine chemicals activities within the new Degussa, we are aligning ourselves to best meet the needs of our customers in accordance with our strategic 'Solutions to Customers' approach." Over the past two years, Degussa has swiftly combined the fine chemicals operations of Hüls, SKW Trostberg, the old Degussa and Laporte at a total of 19 locations worldwide into functioning units. At the same time, the catalysts and initiators activities of Laporte and Degussa have been integrated. In future, Degussa will be pooling into business units within its restructured Fine & Industrial Chemicals Division those activities that follow similar strategies and face comparable operative market and customer requirements.

https://www.chemeurope.com/en/news/29790/degussa-makes-euro-500-million-impairment-charge-in-fine-chemicals.html