19. Investments in associates

Changes in the carrying amounts of the Group’s interests in associates included at equity were as follows:

	2006	2007
€ million
Net carrying amounts, January 1	795	532
Acquisitions	2	0
Other additions	46	28
Divestitures	(195)	0
Miscellaneous retirements	(47)	0
Reclassifications to current assets	(3)	0
Equity-method loss after taxes	(30)	(45)
Exchange differences	(36)	(31)
Net carrying amounts, December 31	532	484

For strategic reasons, the Bayer MaterialScience subgroup holds or is responsible for interests in companies that are included at equity in the consolidated financial statements of the Bayer Group.

In 2000, Bayer acquired the polyols business and parts of the propylene oxide (PO) production operations of Lyondell Chemicals. The strategic objective is to ensure access to patented technologies and safeguard the long-term supply of PO, a starting product for polyurethane, at reasonable prices. As part of this strategy, two joint ventures have been established to produce PO (PO JV Delaware U.S.A., Bayer’s interest 44 percent and Lyondell Bayer Manufacturing Maasvlakte VOF, Netherlands, Bayer’s interest 50 percent). The production facilities of both companies are operated by Lyondell. Bayer benefits from fixed long-term supply quotas/volumes of PO based on fixed price components.

The difference between the equity interest in the underlying net assets of associates and their at-equity accounting values is €12 million (2006: €12 million). It mainly relates to acquired goodwill.

The following tables present a summary of the aggregated income statement and balance sheet data for the associates included at equity in the consolidated financial statements of the Bayer Group.

Aggregated income statement data of associates included at equity	2006	2007
€ million
Net sales	1,593	1,072
Gross profit	320	88
Net loss	(46)	(92)
Share of pre-tax loss	(20)	(45)
Other	(5)	0
Pre-tax loss from interests in associates included at equity (equity-method loss)	(25)	(45)

Aggregated balance sheet data of associates included at equity	Dec. 31, 2006	Dec. 31, 2007
€ million
Noncurrent assets	1,100	962
Current assets	253	260
Noncurrent liabilities	10	11
Current liabilities	218	191
Stockholders’ equity	1,125	1,020
Share of stockholders’ equity	507	463
Other	25	21
Net carrying amount of associates included at equity	532	484

The item “miscellaneous” mainly comprises differences arising from adjustments of data to Bayer’s uniform accounting policies, purchase price allocations and their amortization in income, and impairment losses.