Business Review

Functional Materials & Solutions segment

  • Sales growth of 3% to €21,435 million from higher prices and volumes
  • EBIT before special items declines 19% to €1,307 million, primarily due to lower margins and increase in fixed costs

Sales to third parties in the Functional Materials & Solutions segment grew by €690 million to €21,435 million, especially in Catalysts. This was mainly attributable to higher prices in all divisions. Volumes also increased. Sales were reduced by currency effects (volumes 2%, prices 5%, portfolio 0%, currencies –4%).

Income from operations (EBIT) before special items was €1,307 million, down €310 million from the 2017 figure. This was mainly driven by lower margins as a result of the increase in raw materials prices and higher fixed costs. EBIT declined by €310 million to €1,235 million in 2018. Overall, special items did not have a substantial impact.

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Segment data – Functional Materials & Solutions (Million €)

 

 

 

2018

2017

+/–

1

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

2

Additions to intangible assets and property, plant and equipment

Sales to third parties

 

 

21,435

20,745

3%

of which Catalysts

 

 

7,469

6,658

12%

Construction Chemicals

 

 

2,456

2,412

2%

Coatings

 

 

3,856

3,969

(3%)

Performance Materials

 

 

7,654

7,706

(1%)

Intersegment transfers

 

 

837

805

4%

Sales including intersegment transfers

 

 

22,272

21,550

3%

Income from operations before depreciation and amortization (EBITDA)

 

 

1,917

2,251

(15%)

EBITDA margin

 

%

8.9

10.9

–

Depreciation and amortization1

 

 

682

706

(3%)

Income from operations (EBIT)

 

 

1,235

1,545

(20%)

Special items

 

 

(72)

(72)

−

EBIT before special items

 

 

1,307

1,617

(19%)

EBIT after cost of capital

 

 

(512)

(190)

.

Assets

 

 

17,654

17,364

2%

Investments including acquisitions2

 

 

872

1,056

(17%)

Research and development expenses

 

 

412

431

(4%)