- Strong sales improvement in 2010 thanks to higher demand; full-year inclusion of Ciba businesses further boosts sales growth
- Earnings far above 2009 level despite one-time expenses for valuation adjustments on receivables related to long-term supply agreements
- Outlook 2011: slight sales growth; strong earnings improvement due to the realization of further synergies from the Ciba integration and measures implemented to increase efficiency
Performance Chemicals – Sales by region
(location of customer)
Sales to third parties in 2010 rose sharply compared with the previous year by €961 million to reach €3,141 million (volumes 16%, prices 2%, portfolio 21%, currencies 5%). Following a difficult year in 2009, demand for our products developed positively in all of our customer industries. Owing to the shortage of raw materials and high rates of capacity utilization, we could not always fully meet the high demand. Sales in the business with automotive and refinery chemicals were far above the level of the previous year, thanks to higher sales volumes and prices. Sales were further boosted by the full-year inclusion of the integrated Ciba businesses: In our businesses with plastic additives, lubricant additives, water treatment chemicals and oilfield chemicals, we posted a substantial increase in sales volumes. Thanks to our strict price management, we were able to pass on higher raw materials costs to the market in many business areas.
As a result of higher volumes, income from operations was far above the level of the previous year. The new business areas resulting from the Ciba acquisition had a positive impact on earnings growth, but were offset by one-time expenses for valuation adjustments on receivables related to long-term supply agreements.
In 2011, we expect sales to grow slightly. We will maintain our strict price and cost management. We will continue to grow profitably thanks to innovations and investments, such as our new production plant for polyisobutene in Ludwigshafen, Germany. We expect strong earnings improvement as a result of further synergies from the Ciba integration and our measures introduced to improve efficiency.