Business Review

Performance Products segment

  • Sales 2% lower at €15,812 million, mainly as a result of currency effects and lower volumes
  • EBIT before special items down 3% to €1,376 million, primarily due to lower sales volumes and negative currency effects

At €15,812 million, sales to third parties in the Performance Products segment in 2018 were €405 million below the prior-year figure (volumes –2%, prices 4%, portfolio –1%, currencies –3%). This is mainly attributable to negative currency effects in all divisions. Sales were also negatively impacted by lower volumes in the Nutrition & Health and Care Chemicals divisions as well as portfolio effects. Higher sales prices in all divisions had an offsetting effect.

Despite an overall improvement in margins, income from operations (EBIT) before special items declined by €40 million year on year to €1,376 million. This was largely due to lower sales volumes and negative currency effects. Excluding the negative currency effects, EBIT before special items was flat year on year. Compared with 2017, EBIT declined by €172 million to €1,338 million. In the previous year, we generated special income from the transfer of BASF’s leather chemicals business to the Stahl group; in 2018, special charges arose from various individual items.

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Segment data – Performance Products (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

 

 

15,812

16,217

(2%)

of which Dispersions & Pigments

 

 

5,292

5,398

(2%)

Care Chemicals

 

 

4,913

5,079

(3%)

Nutrition & Health

 

 

1,696

1,844

(8%)

Performance Chemicals

 

 

3,911

3,896

0%

Intersegment transfers

 

 

498

506

(2%)

Sales including intersegment transfers

 

 

16,310

16,723

(2%)

Income from operations before depreciation and amortization (EBITDA)

 

 

2,205

2,427

(9%)

EBITDA margin

 

%

13.9

15.0

–

Depreciation and amortization1

 

 

867

917

(5%)

Income from operations (EBIT)

 

 

1,338

1,510

(11%)

Special items

 

 

(38)

94

.

EBIT before special items

 

 

1,376

1,416

(3%)

EBIT after cost of capital

 

 

(131)

26

.

Assets

 

 

14,903

14,432

3%

Investments including acquisitions2

 

 

765

800

(4%)

Research and development expenses

 

 

394

395

(0%)