Business review

Performance Products segment

• At €15,002 million, sales driven down 4% mainly by prices and divestitures
• EBIT before special items improves by 28% to €1,745 million, primarily due to lower fixed costs and higher margins

At €15,002 million, sales to third parties in 2016 in the Performance Products segment were €646 million below the level of the previous year. This was primarily attributable to falling sales prices and the divestitures completed in 2015 (volumes 1%, prices –2%, portfolio –2%, currencies –1%). The drop in sales prices was largely the result of oil-price-related reductions in raw material costs, in addition to ongoing pressure on prices in the hygiene business. Sharp increases in vitamin prices in the Nutrition & Health division helped counter this development.

In addition, the portfolio measures taken in 2015 — in particular, the divestiture of parts of our pharmaceutical ingredients and services business and the paper hydrous kaolin activities, as well as the sale of the textile chemicals business — led to diminished sales in 2016. Currency effects slightly dampened sales in all divisions. We achieved volumes growth overall in the remaining business.

We raised income from operations (EBIT) before special items by €379 million to €1,745 million. This was mostly due to significantly reduced fixed costs thanks to restructuring measures and strict fixed cost management, in addition to improved margins. At €1,648 million, EBIT exceeded the previous year’s level by €308 million. Special charges were predominantly attributable to restructuring measures. Special income arose particularly from the sale of the photoinitiator business.