Business Review
At a glance
- Sales of € 8,876 million; considerable growth mainly driven by higher volumes and prices
- Considerable increase in EBIT before special items to €1,006 million
Sales to third parties in the Industrial Solutions segment rose by €1,232 million year on year to €8,876 million in 2021. This was attributable to considerably higher sales in both divisions. The Dispersions & Resins division increased sales by €812 million to €5,681 million. Sales in the Performance Chemicals division amounted to €3,195 million, €420 million above the prior-year figure.
|
Industrial Solutions |
Dispersions & Resins |
Performance Chemicals |
|---|---|---|---|
Volumes |
11.4% |
11.4% |
11.5% |
Prices |
11.2% |
14.5% |
5.4% |
Portfolio |
–5.0% |
–7.9% |
0.0% |
Currencies |
–1.5% |
–1.3% |
–1.8% |
Sales |
16.1% |
16.7% |
15.1% |
The positive sales performance was attributable to higher volumes and prices in both divisions. The increase in sales volumes mainly resulted from the global economic recovery from the coronavirus pandemic. Volume growth in the Dispersions & Resins division was mainly driven by the dispersions business. The Performance Chemicals division recorded higher sales volumes in all business areas.
The higher price level was driven primarily by increased raw materials prices. Both divisions raised prices in almost all business areas and all regions.
Portfolio effects in the Dispersions & Resins division following the disposal of the global pigments business as of June 30, 2021, had an offsetting impact.
Sales were also reduced by slightly negative currency effects in both divisions, mainly relating to the U.S. dollar.
|
|
2021 |
2020 |
+/– |
||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sales to third parties |
|
8,876 |
7,644 |
16.1% |
||||||||||
of which Dispersions & Resins |
|
5,681 |
4,869 |
16.7% |
||||||||||
Performance Chemicals |
|
3,195 |
2,775 |
15.1% |
||||||||||
Intersegment transfers |
|
420 |
375 |
11.9% |
||||||||||
Sales including transfers |
|
9,296 |
8,019 |
15.9% |
||||||||||
Income from operations before depreciation, amortization and special items |
|
1,343 |
1,189 |
13.0% |
||||||||||
Income from operations before depreciation and amortization (EBITDA) |
|
1,344 |
1,099 |
22.3% |
||||||||||
EBITDA margin |
% |
15.1 |
14.4 |
− |
||||||||||
Depreciation and amortizationa |
|
380 |
469 |
–19.0% |
||||||||||
Income from operations (EBIT) |
|
965 |
630 |
53.1% |
||||||||||
Special items |
|
–42 |
–192 |
78.4% |
||||||||||
EBIT before special items |
|
1,006 |
822 |
22.4% |
||||||||||
Return on capital employed (ROCE) |
% |
15.2 |
9.3 |
− |
||||||||||
Assets |
|
6,302 |
6,402 |
–1.6% |
||||||||||
Investments including acquisitionsb |
|
361 |
331 |
9.1% |
||||||||||
Research and development expenses |
|
175 |
177 |
–1.1% |
||||||||||
|
||||||||||||||
Industrial Solutions – sales
By division
Income from operations (EBIT) before special items rose considerably compared with 2020. This was attributable to considerably higher EBIT before special items in the Dispersions & Resins division, mainly as a result of volume growth.
By contrast, EBIT before special items declined slightly in the Performance Chemicals division. This was primarily due to the increase in fixed costs mainly from higher bonus provisions, lower margins due to higher raw materials prices, and negative currency effects. This could not be offset by the division’s positive volume performance.
At €965 million, EBIT was €335 million above the prior-year figure. Special items amounted to –€42 million in 2021 after –€192 million in 2020. Special charges in the previous year related mainly to the carve-out of the pigments business and impairments.
Divisions |
Europe |
North America |
Asia Pacific |
South America, |
Total |
|---|---|---|---|---|---|
Dispersions & Resins |
40% |
24% |
30% |
6% |
5,681 |
Performance Chemicals |
40% |
23% |
27% |
10% |
3,195 |