Business review

  • Sales up 4% at €16,217 million, mainly driven by higher volumes
  • EBIT before special items decreases by 20% to €1,416 million as a result of lower margins

At €16,217 million, sales to third parties in the Performance Products segment were €659 million above the prior-year figure in 2017 (volumes 5%, prices 1%, portfolio –1%, currencies –1%). This is mainly attributable to volumes growth in all divisions. Higher sales prices in the Care Chemicals and Dispersions & Pigments divisions also had a positive impact on sales. Portfolio measures and negative currency effects in all divisions reduced sales slightly.

Income from operations (EBIT) before special items declined by €361 million year-on-year to €1,416 million. This was largely due to lower margins, primarily as a result of higher raw materials prices that could not be fully passed on via sales prices. Compared with 2016, EBIT declined by €168 million to €1,510 million. Special income in the Performance Chemicals division from the transfer of BASF’s leather chemicals business to the Stahl group only partially compensated for the margin-related decline in earnings.

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Segment data1 (million €)

 

 

 

2017

2016

Change in %

1

Effective January 1, 2017, the Chemicals and Performance Products segments’ activities for the electronics industry were merged and allocated to the Performance Products segmentas the Electronic Materials global business unit. To facilitate comparability, the relevant figures for 2016 have been adjusted accordingly.

2

Amortization of intangible assets and depreciation of property, plant and equipment (including impairments and reversals of impairments)

3

Additions to intangible assets and property, plant and equipment

Sales to third parties

 

 

16,217

15,558

4

Thereof Dispersions & Pigments

 

 

5,398

5,086

6

Care Chemicals

 

 

5,079

4,735

7

Nutrition & Health

 

 

1,844

1,932

(5)

Performance Chemicals

 

 

3,896

3,805

2

Intersegmental transfers

 

 

506

469

8

Sales including intersegmental transfers

 

 

16,723

16,027

4

Income from operations before depreciation and amortization (EBITDA)

 

 

2,427

2,577

(6)

EBITDA margin

 

%

15.0

16.6

–

Amortization and depreciation2

 

 

917

899

2

Income from operations (EBIT)

 

 

1,510

1,678

(10)

Special items

 

 

94

(99)

.

EBIT before special items

 

 

1,416

1,777

(20)

EBIT after cost of capital

 

 

26

205

(87)

Assets

 

 

14,432

14,911

(3)

Investments including acquisitions3

 

 

800

892

(10)

Research and development expenses

 

 

395

399

(1)