Performance Products

3rd Quarter 2018

Sales in the Performance Products segment were on a level with the prior-year quarter. We achieved higher prices in all divisions; however, sales volumes decreased in the Nutrition & Health, Dispersions & Pigments and Care Chemicals divisions. Sales were also weighed down by currency and portfolio effects. Income from operations (EBIT) before special items declined slightly compared with the third quarter of 2017 as a result of lower volumes, higher fixed costs and negative currency effects. Stronger margins had an offsetting effect. Excluding the negative currency effects, EBIT before special items was flat year on year.

Factors influencing sales, Performance Products 3rd quarter 2018

Dispersions & Pigments

In the Dispersions & Pigments division, sales remained at the level of the prior-year quarter. We increased sales prices in all regions and business areas but sales volumes declined slightly. The divestiture of the production site for styrene butadiene-based paper dispersions in Pischelsdorf, Austria, and negative currency effects also reduced sales slightly. EBIT before special items declined considerably compared with the third quarter of 2017, mainly due to higher fixed costs and lower volumes.

Care Chemicals

Sales in the Care Chemicals division matched the figure for the third quarter of 2017. Slightly higher prices, especially for ingredients for the detergent and cleaner industries, contrasted with lower sales volumes, particularly of oleochemical surfactants and fatty alcohols, as well as negative currency effects. EBIT before special items increased slightly compared with the prior-year quarter, primarily due to stronger margins.

Nutrition & Health

Sales in the Nutrition & Health division declined slightly as against the prior-year quarter. This was mainly due to lower volumes, primarily because of the reduced availability of citral-based products. In the human and animal nutrition business areas, we were able to gradually lift Force Majeure for all affected products. Sales were reduced by negative currency effects. Higher prices had an offsetting impact. EBIT before special items considerably exceeded the figure for the third quarter of 2017 due, among other factors, to lower fixed costs.

Performance Chemicals

In the Performance Chemicals division, sales rose slightly compared with the third quarter of 2017. This was attributable to higher sales prices and volumes in almost all business areas. Prices were up on the prior-year level, especially for fuel, lubricant and plastic additives. We increased sales volumes, primarily in the oilfield and mining chemicals and paper and water chemicals business areas. EBIT before special items decreased slightly year on year, mainly due to higher fixed costs. Volumes growth and higher margins had a positive impact on earnings.