Business review

Functional Materials & Solutions segment

  • Sales grow by 1% to €18,732 million
  • EBIT before special items increases by 18% to €1,946 million as a result of higher contributions from all divisions

In the Functional Materials & Solutions segment, sales to third parties increased by €209 million to €18,732 million. By increasing volumes in all divisions, we were able to more than compensate for lower prices and mildly negative currency effects (volumes 7%, prices –5%, portfolio 0%, currencies –1%). The volumes growth was mainly attributable to higher demand for our products for the automotive industry. Business with the construction industry saw sales volumes at a high level overall.

Income from operations (EBIT) before special items grew by €297 million to €1,946 million compared with 2015. All divisions contributed to this considerable earnings increase, with particular support from higher margins in the Performance Materials division. Special income in 2016 especially pertained to the sale of the industrial coatings business as well as the divestiture of the business with polyolefin catalysts. EBIT rose by €592 million to €2,199 million.

Segment data (million €)

 

 

 

2016

2015

Change in %

1

Amortization of intangible assets and depreciation of property, plant and equipment (including impairments and write-ups)

2

Additions to intangible assets and property, plant and equipment (including acquisitions)

Sales to third parties

 

 

18,732

18,523

1

Thereof Catalysts

 

 

6,263

6,306

(1)

Construction Chemicals

 

 

2,332

2,304

1

Coatings

 

 

3,249

3,166

3

Performance Materials

 

 

6,888

6,747

2

Intersegmental transfers

 

 

736

873

(16)

Sales including intersegmental transfers

 

 

19,468

19,396

0

Income from operations before depreciation and amortization (EBITDA)

 

 

2,906

2,228

30

EBITDA margin

 

%

15.5

12.0

Depreciation and amortization1

 

 

707

621

14

Income from operations (EBIT)

 

 

2,199

1,607

37

Special items

 

 

253

(42)

.

EBIT before special items

 

 

1,946

1,649

18

EBIT after cost of capital

 

 

813

96

.

Assets

 

 

17,359

13,341

30

Investments2

 

 

3,679

854

331

Research and development expenses

 

 

393

392

0