Business review

We were able to increase sales volumes in the Performance Products segment; however, sales to third parties in 2013 decreased by €179 million to €15,534 million. Negative currency effects and price reductions on account of lower raw material costs were largely responsible for this. The acquisition of Pronova BioPharma ASA slowed this sales decline (volumes 3%, prices –2%, portfolio 1%, currencies –3%). Compared with 2012, income from operations before special items decreased by €56 million to €1,365 million. This was particularly attributable to the negative currency effects. Special charges arose from the integration of Pronova BioPharma as well as from restructuring measures. As a result, income from operations fell by €176 million to €1,100 million.

In a market environment that continues to be challenging, we aim to slightly increase sales in 2014 through organic growth. In the Dispersions & Pigments division, we anticipate rising demand from two key industries: automotive manufacture and construction. We also expect higher sales volumes in the Care Chemicals and Nutrition & Health divisions. Sales prices are likely to remain under pressure. We want to increase the capacity utilization of our existing plants and achieve high utilization of new plants, such as for superabsorbents and dispersions, from the start. We anticipate income from operations before special items considerably above the level of 2013. Strict cost discipline and repositioning measures to increase our competitiveness in all areas should contribute to this.

Sales – Performance Products (million €)
Performance Products – Sales (bar chart)Enlarge image
Sales by division
Performance Products – Sales by division (pie chart)Enlarge image
Factors influencing sales – Performance Products
Performance Products – Factors influencing sales (bar chart)Enlarge image
Income from operations before special items – Performance Products (million €)
Performance Products – Income from operations (bar chart)Enlarge image
  (XLS:) Download (xls, 24 kB)

Segment data Performance Products (million €)

 

 

2013

2012

Change in %

Sales to third parties

 

15,534

15,713

(1)

Thereof Dispersions & Pigments

 

3,557

3,668

(3)

Care Chemicals

 

4,871

4,898

(1)

Nutrition & Health

 

2,088

1,959

7

Paper Chemicals

 

1,442

1,564

(8)

Performance Chemicals

 

3,576

3,624

(1)

Intersegmental transfers

 

489

457

7

Sales including intersegmental transfers

 

16,023

16,170

(1)

Income from operations before depreciation and amortization (EBITDA)

1,987

2,090

(5)

EBITDA margin

%

12.8

13.3

Income from operations (EBIT) before special items

1,365

1,421

(4)

Income from operations (EBIT)

 

1,100

1,276

(14)

Income from operations (EBIT) after cost of capital

(447)

(242)

(85)

Assets

 

13,614

13,457

1

Research and development expenses

 

377

345

9

Additions to property, plant and equipment and intangible assets

 

1,497

764

96