Business review

• Sales growth of 11% to €20,745 million, mainly from higher prices and volumes
• EBIT before special items down 17% to €1,617 million due to lower margins and rising fixed costs

In the Functional Materials & Solutions segment, sales to third parties increased by €2,013 million to €20,745 million. This was due to higher prices and volumes as well as the Chemetall business, which was acquired from Albemarle in December 2016; sales were slightly reduced by currency effects (volumes 4%, prices 5%, portfolio 3%, currencies –1%). The volumes growth was largely attributable to higher demand for our products for the automotive and construction industries.

At €1,617 million, income from operations (EBIT) before special items was down €329 million on the 2016 figure, primarily due to lower margins and higher fixed costs. Special charges in 2017 mainly related to integration costs in connection with the Chemetall acquisition as well as the acquisition of the western European building material business for professional users from the Henkel group. In 2016, special income arose from the divestiture of the industrial coatings business in the Coatings division. EBIT declined by €654 million to €1,545 million in 2017.