05/06/2009 - Süd-Chemie makes a satisfactory start to a challenging year in 2009

- Moderate drop in revenue and substantial drop in earnings in the first three months of 2009: revenue fell by 2.9% and the operating result (EBIT) by 54.4%

- Confident outlook reaffirmed for the challenging year 2009: earnings expected to fall by no more than 4% and EBIT by no more than 20%

In spite of a considerable drop in worldwide demand for chemical products, Süd-Chemie AG, Munich has made a comparatively satisfactory start to 2009. During the first three months of this year, the consolidated revenue generated by the leading speciality chemicals enterprise was only a marginal 2.9% down on the first quarter of 2008, reaching €261.5 million. Compared with the same period last year, lower business volumes were recorded by both corporate divisions, Adsorbents and Catalysts. Currency effects had a positive impact, boosting revenue by €4.3 million. Acquisitions and investments made from the second quarter of 2008 onwards contributed another €7.6 million to total revenue.

The economic downturn had a negative effect on the Group's operating profit (EBIT), especially during January and February 2009, a drop of 54.4% to €12.3 million being reported for the first three months. The significantly steeper downturn in first-quarter earnings compared with revenue was due mainly to falling volume sales and subsequent underutilisation of production capacity, but also to negative extraordinary items incurred from the hedging of raw material prices and inventory valuations. In March, the earnings situation returned to normal, so that Süd-Chemie can continue to view its ongoing performance in 2009 with a degree of confidence, encouraged notably by the sustained solid trend in incoming orders recorded in key segments.

To secure the earnings and financial strength of the company in the face of the global economic downswing, the Group decided as early as the end of 2008 to reduce scheduled capital expenditure by some 40%, as well as introducing both cost-cutting measures and a recruitment ban. Furthermore, in order to cushion the impact of falling demand on the relevant production lines and also secure jobs, the company has meanwhile introduced temporary short-time work for some 400 employees at various plants in Germany. The Group sites affected by short-time work are Bendorf, Duisburg, Fuldabrück, Hart, Heufeld, Moosburg and Wülfrath.

Confident outlook reaffirmed for 2009

In spite of the difficult overall situation, Süd-Chemie is adhering to its 2009 forecast published in March 2009, which is based on the Group's still excellent market positions, the positive business development during 2009 so far, the continuing satisfactory trend in incoming orders in key segments as well as the positive influence of cost-reducing measures already implemented and declining raw material prices. The company therefore expects consolidated revenue to reach between €1.15 and €1.2 billion which, compared with 2008, represents a shortfall of no more than 4%. Profit from operations (EBIT) will probably fall to between €95 and €100 million in 2009, a drop of no more than 20% compared with last year.

The Süd-Chemie AG report for the first three months of 2009 can be downloaded at
www.sud-chemie.com.

Munich, 6 May 2009

Statements relating to future events

This report contains statements relating to future events based on current estimates made by the management with respect to prospective developments. Such statements are subject to uncertainties and risks which Süd-Chemie is neither able to control nor accurately assess, including for instance future market conditions and the economic environment, the behavior of other market participants or governmental measures. Should any one of these, or other uncertain or unassessable factors take effect, or should assumptions on which the statements are based prove to be incorrect, the actual results may differ significantly from those explicitly defined or implicitly contained in these statements. Süd-Chemie neither intends nor undertakes a specific obligation to update statements relating to future events in order to adjust these in line with events or developments occurring after the date of this report.

About Süd-Chemie

Süd-Chemie (www.sud-chemie.com) is a publicly quoted (Security Identification Number ISIN: DE0007292005; WKN: 729200) specialty chemicals company headquartered in Munich, Germany and operating on a worldwide scale. Key markets served by its Adsorbents Division include the consumer goods, packaging and foundry industries, as well water treatment. Products manufactured by the Catalysts Division offer solutions for the chemical, petrochemical and refinery industries, for energy storage and hydrogen production, as well as off-gas purification. The common denominator of all Süd-Chemie products and services is the efficient and sparing use of natural resources to enhance the quality of life for humans and the environment. The Süd-Chemie Group generated sales of €1.191 billion in 2008, approx. 80% of these outside Germany. At the end of March 2009, the group employed 6,318 people in its 80 sales and production companies worldwide.