Business review

In the Functional Materials & Solutions segment, sales to third parties in 2013 rose by €203 million to €17,252 million (volumes 4%, prices 1%, currencies –4%). This is primarily attributable to higher sales volumes in the Performance Materials and Catalysts divisions. Sales in all divisions were negatively impacted by currency effects. In the Construction Chemicals division, portfolio measures additionally put a strain on sales development. At €1,070 million, income from operations before special items exceeded the level of 2012 by €138 million. All divisions contributed to this considerable increase. Income from operations in the segment grew by €221 million to €1,027 million as a result of lower special charges. In 2012, high special charges had occurred from measures to improve competitiveness in the Construction Chemicals division.

For 2014, we anticipate higher demand from our key customer industries, especially from the automotive and construction sectors. Sales volumes for our innovative specialties and system solutions are therefore likely to rise significantly. While we forecast a slight sales increase in the Catalysts division and a considerable sales increase in the Coatings and Performance Materials divisions, we are expecting sales in the Construction Chemicals division to match the level of 2013 as a result of portfolio effects. Overall, we are aiming for slight sales growth and a considerable, mainly volumes-driven increase in income from operations before special items.

Sales – Functional Materials & Solutions (million €)
Functional Materials & Solutions – Sales (bar chart)Enlarge image
Sales by division
 
Functional Materials & Solutions – Sales by division (pie chart)Enlarge image
Factors influencing sales – Functional Materials & Solutions
 
Functional Materials & Solutions – Factors influencing sales (bar chart)Enlarge image
Income from operations before special items – Functional Materials & Solutions (million €)
Functional Materials & Solutions – Income from operations (bar chart)Enlarge image
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Segment data Functional Materials & Solutions (million €)

 

 

2013

2012

Change in %

Sales to third parties

 

17,252

17,049

1

Thereof Catalysts

 

5,708

5,568

3

Construction Chemicals

 

2,120

2,315

(8)

Coatings

 

2,927

2,961

(1)

Performance Materials

 

6,497

6,205

5

Intersegmental transfers

 

835

419

99

Sales including intersegmental transfers

 

18,087

17,468

4

Income from operations before depreciation and amortization (EBITDA)

1,498

1,363

10

EBITDA margin

%

8.7

8.0

Income from operations (EBIT) before special items

1,070

932

15

Income from operations (EBIT)

 

1,027

806

27

Income from operations (EBIT) after cost of capital

 

(328)

(548)

40

Assets

 

11,899

12,146

(2)

Research and development expenses

 

367

348

5

Additions to property, plant and equipment and intangible assets

 

611

760

(20)