Business review

Functional Materials & Solutions

In the Functional Materials & Solutions segment, we increased sales to third parties by €798 million to €18,523 million as compared with the previous year. This development was essentially due to positive currency effects in all divisions. Prices dipped slightly overall, while volumes remained stable (volumes 0%, prices –4%, portfolio 0%, currencies 9%). Higher demand, especially from the automotive industry, was not able to offset lower sales volumes in precious metal trading. At €1,649 million, income from operations before special items exceeded 2014 levels by €452 million, primarily thanks to the sharp earnings increases in the Performance Materials and Construction Chemicals divisions. Despite higher special charges in the Catalysts division, income from operations for the segment grew by €457 million to €1,607 million.

For 2016, we expect continuing high demand from our key customer industries, automotive and construction, and are planning on volumes increases in all divisions. We do, however, anticipate negative effects from continuing declines in precious metal prices and predict overall that sales will match the prior-year level. We aim to slightly raise income from operations before special items.