Performance Products

1st Quarter 2018

Sales in the Performance Products segment declined considerably year on year. This was primarily attributable to negative currency effects in all divisions, mainly relating to the U.S. dollar. Sales were also reduced by lower volumes in the Nutrition & Health and Care Chemicals divisions as well as portfolio effects. We raised sales prices and, adjusted for currency effects, increased the average margin compared with the prior-year quarter. Income from operations (EBIT) before special items nevertheless declined slightly, largely as a result of negative currency effects.

Factors influencing sales, Performance Products
1st quarter 2018

Dispersions & Pigments

In the Dispersions & Pigments division, sales were slightly lower than in the prior-year quarter, mainly as a result of negative currency effects. The divestiture of the production site for styrene butadiene-based paper dispersions in Pischelsdorf, Austria, also reduced sales slightly. By contrast, sales were positively impacted by higher sales volumes in the dispersions, electronic materials, pigments and resins businesses. EBIT before special items was considerably below the figure for the first quarter of 2017, primarily due to currency effects.

Care Chemicals

Sales in the Care Chemicals division declined slightly as against the prior-year quarter. This was mainly attributable to significantly negative currency effects. Slightly lower sales volumes, especially for oleochemical surfactants and fatty alcohols, also reduced sales. Higher sales prices in all business areas had an offsetting effect. EBIT before special items rose slightly compared with the first quarter of 2017 as a result of lower fixed costs.

Nutrition & Health

In the Nutrition & Health division, sales were considerably below the figure for the prior-year quarter, largely due to lower volumes. Sales volumes declined, primarily because of the low availability of citral-based products. On October 31, 2017, a fire occurred during startup of the citral plant in Ludwigshafen, Germany. As a result, we had to declare Force Majeure for all citral and isoprenol-based aroma ingredients, and consequently for vitamin A, vitamin E and several carotenoid products. Sales were also weighed down by negative currency effects. By contrast, prices rose significantly, especially in the animal nutrition business. EBIT before special items declined slightly compared with the first quarter of 2017 due to the lower sales volumes.

Performance Chemicals

Sales in the Performance Chemicals division declined considerably year on year. This was primarily attributable to negative currency effects. Sales were also reduced by the transfer of BASF’s leather chemicals business to the Stahl group. By contrast, prices – in particular for fuel, lubricant and plastic additives – trended slightly upward. Volumes were on a level with the prior-year quarter. EBIT before special items was down considerably on the prior-year quarter, mainly as a result of negative currency effects.