Business review

Functional Materials & Solutions

In the Functional Materials & Solutions segment, we increased our sales to third parties by €473 million to €17,725 million compared with the previous year (volumes 5%, prices 0%, currencies −2%). This was predominantly on account of considerably higher sales volumes, especially of products for the automotive industry. Negative currency effects weakened sales growth in all divisions. Prices remained stable overall. At €1,197 million, income from operations before special items were €127 million above the 2013 level as a result of the increase in the Catalysts and Coatings divisions. Income from operations grew by €123 million to €1,150 million despite higher special charges in the Construction Chemicals division.

For 2015, we expect higher demand from our key customer industries, automotive and construction. We anticipate a significant increase in sales volumes of our innovative specialties and system solutions. We want to raise our sales considerably. In the Catalysts and Performance Materials divisions, sales growth will be supported by the startup of new plants. We are also striving for a considerable increase in income from operations before special items. All divisions are expected to contribute to this development.

Segment data (in million €)

 

 

 

2014

2013

Change in %

Sales to third parties

 

 

17,725

17,252

3

Thereof Catalysts

 

 

6,135

5,708

7

Construction Chemicals

 

 

2,060

2,120

(3)

Coatings

 

 

2,984

2,927

2

Performance Materials

 

 

6,546

6,497

1

Intersegmental transfers

 

 

832

835

0

Sales including intersegmental transfers

 

 

18,557

18,087

3

Income from operations before depreciation and amortization (EBITDA)

 

 

1,678

1,498

12

EBITDA margin

 

%

9.5

8.7

Income from operations (EBIT) before special items

 

 

1,197

1,070

12

Income from operations (EBIT)

 

 

1,150

1,027

12

Income from operations (EBIT) after cost of capital

 

 

(240)

(328)

27

Assets

 

 

12,987

11,899

9

Research expenses

 

 

379

367

3

Additions to property, plant and equipment and intangible assets

 

 

650

611

6