Business review
Functional Materials & Solutions segment
- Sales grow by 1% to €18,732 million
- EBIT before special items increases by 18% to €1,946 million as a result of higher contributions from all divisions
In the Functional Materials & Solutions segment, sales to third parties increased by €209 million to €18,732 million. By increasing volumes in all divisions, we were able to more than compensate for lower prices and mildly negative currency effects (volumes 7%, prices –5%, portfolio 0%, currencies –1%). The volumes growth was mainly attributable to higher demand for our products for the automotive industry. Business with the construction industry saw sales volumes at a high level overall.
Income from operations (EBIT) before special items grew by €297 million to €1,946 million compared with 2015. All divisions contributed to this considerable earnings increase, with particular support from higher margins in the Performance Materials division. Special income in 2016 especially pertained to the sale of the industrial coatings business as well as the divestiture of the business with polyolefin catalysts. EBIT rose by €592 million to €2,199 million.
Segment data (million €) |
|||||||||
|
|
|
2016 |
2015 |
Change in % |
||||
|---|---|---|---|---|---|---|---|---|---|
|
|||||||||
Sales to third parties |
|
|
18,732 |
18,523 |
1 |
||||
Thereof Catalysts |
|
|
6,263 |
6,306 |
(1) |
||||
Construction Chemicals |
|
|
2,332 |
2,304 |
1 |
||||
Coatings |
|
|
3,249 |
3,166 |
3 |
||||
Performance Materials |
|
|
6,888 |
6,747 |
2 |
||||
Intersegmental transfers |
|
|
736 |
873 |
(16) |
||||
Sales including intersegmental transfers |
|
|
19,468 |
19,396 |
0 |
||||
Income from operations before depreciation and amortization (EBITDA) |
|
|
2,906 |
2,228 |
30 |
||||
EBITDA margin |
|
% |
15.5 |
12.0 |
– |
||||
Depreciation and amortization1 |
|
|
707 |
621 |
14 |
||||
Income from operations (EBIT) |
|
|
2,199 |
1,607 |
37 |
||||
Special items |
|
|
253 |
(42) |
. |
||||
EBIT before special items |
|
|
1,946 |
1,649 |
18 |
||||
EBIT after cost of capital |
|
|
813 |
96 |
. |
||||
Assets |
|
|
17,359 |
13,341 |
30 |
||||
Investments2 |
|
|
3,679 |
854 |
331 |
||||
Research and development expenses |
|
|
393 |
392 |
0 |
||||