Performance Products

1st Quarter 2015

• Slight, currency-driven rise in sales
• Considerable earnings increase through higher margins and efficiency measures

In the Performance Products segment, sales grew slightly compared with the previous first quarter. We observed positive currency effects in all divisions, which in total more than compensated for slightly reduced sales volumes and falling prices (volumes −2%, prices −3%, currencies 9%). Ongoing pressure on prices in the paper chemicals business and for vitamin E had an especially negative effect on sales prices. We achieved considerably improved income from operations before special items. In addition to higher margins arising in part from lower raw material costs, this was largely the result of savings from efficiency and restructuring measures in all divisions.

Dispersions & Pigments

The Dispersions & Pigments division increased sales slightly, primarily on account of currency effects. Aside from lower prices, reduced sales volumes – especially of paper chemicals – also put a strain on sales development. Growth impetus came from higher sales volumes of resins and additives. In North America, demand recovered in both the paint and coatings industry and the construction sector. Volumes decreased in the European construction sector, however. Earnings improved considerably. This was largely due to positive currency effects, especially in terms of the U.S. dollar, as well as stronger margins as a result of lower raw material costs.

Care Chemicals

Sales in the Care Chemicals division rose slightly quarter-on-quarter. This was mainly attributable to highly positive currency effects, which more than offset the slight decline in volumes and prices in almost all regions. Decreased sales volumes were especially observed in formulation additives for technical applications, as well as in ingredients for the detergents and cleaners industry and the hygiene business area. Prices fell in response to lower raw material costs in nearly all business areas, especially hygiene, oleochemical surfactants and fatty alcohols. We were able to considerably increase earnings thanks to significantly improved margins – primarily the result of currency effects – and the positive impact of ongoing restructuring measures.

Nutrition & Health

Sales grew slightly in the Nutrition & Health division, supported by increased sales volumes in the animal nutrition business area, as well as by positive currency effects, particularly from the stronger U.S. dollar. This allowed us to more than compensate for declining volumes in the pharmaceutical business. Because of ongoing pressure on the price of vitamin E, prices dropped below the prior first-quarter levels. We saw a slight, partly margin-related decline in earnings.

Performance Chemicals

In the Performance Chemicals division, positive currency effects contributed to considerable sales growth. As a result of an unscheduled shutdown of our polyisobutene plant in Antwerp, Belgium, sales volumes remained slightly below the level of the previous first quarter. The increase in sales, our strict fixed cost management, and positive margin development in all business areas all led to a considerable rise in earnings.