Our Engineering Division again achieved significant growth in sales and earnings in the 2007 financial year, following on from a very successful year in 2006. Sales increased in 2007 by 40.4 percent to EUR 2.750bn (2006: EUR 1.958bn). Operating profit (EBITDA (Glossary)) rose 39.5 percent to EUR 240m (2006: EUR 172m).

This substantial jump in sales and earnings is the result of high demand for our technologies worldwide in all four main operating areas (olefin plants, natural gas plants, air separation plants, hydrogen and synthesis gas plants). Especially in growth markets such as Asia, Eastern Europe and the Middle East, our overall strategy, which is not only to design and build plants, but also to offer reliable plant operation through our Gases Division under long-term delivery contracts, is a key factor in our success.

Against this background, our order intake of EUR 2.931bn in the 2007 financial year approached the record level of EUR 3.123bn we achieved in 2006. The order backlog at 31 December 2007 stood at EUR 4.391bn, almost as high as the prior year figure of EUR 4.514bn.

Demand in the Middle East remained exceptionally strong. In this region, we benefited from the continuing expansion of production capacity in the chemical and petrochemical industries. We were awarded a major contract, for example, from Abu Dhabi in the United Arab Emirates to build one of the biggest ethylene plants in the world at the Ruwais site (see olefin plants).

During the financial year, we won contracts worth a total of EUR 887m in the Middle East. As a result, this region contributed the largest share of total order intake in the Engineering Division. Sales in the Middle East rose to EUR 882m, more than double the prior year figure of EUR 333m.

Our Engineering Division also benefited from the positive economic situation in Europe, achieving an increase in both sales and order intake. Sales here rose to EUR 947m (2006: EUR 760m). The order intake from this region totalled EUR 885m (2006: EUR 772m), which represents 30.2 percent of the total order intake in the division.

The fast-growing Asia/Pacific region contributed over 15 percent of order intake in the Engineering Division in 2007. Sales in this region increased during the year from EUR 431m to EUR 604m.

The North American share of order intake was around 15.5 percent. Sales in this region were EUR 202m (2006: EUR 313m).

The South American region was responsible for around 7 percent of order intake in 2007. Sales reached EUR 24m, which was significantly above the prior year figure of EUR 20m.

The largest share of total order intake worldwide (33.7 percent); related to olefin plants (2006: 16.0 percent). Air separation plants accounted for 23.3 percent (2006: 47.4 percent) of total order intake. 16.2 percent of order intake came from natural gas plants (2006: 14.2 percent) and 18.3 percent from hydrogen and synthesis gas plants (2006: 14.1 percent).

Order intake by plant type

Order backlog by plant type