Business Review
At a glance
- Considerable sales increase due to higher prices and currency effects
- EBIT before special items rose by €85 million due to earnings growth in the Performance Chemicals division
Sales to third parties in the Industrial Solutions segment rose by €1,116 million in 2022 to €9,992 million. This was attributable to considerably higher sales in both operating divisions. The Performance Chemicals division increased sales by €778 million to €3,973 million. Sales in the Dispersions & Resins division rose by €338 million to €6,019 million.
|
Industrial Solutions |
Dispersions & Resins |
Performance Chemicals |
|---|---|---|---|
Volumes |
–3.4% |
–5.2% |
–0.3% |
Prices |
16.0% |
14.1% |
19.3% |
Portfolio |
–5.9% |
–8.5% |
–1.5% |
Currencies |
6.0% |
5.5% |
6.9% |
Sales |
12.6% |
6.0% |
24.3% |
Sales growth was mainly due to higher prices in all business areas and regions, passing on increased prices for raw materials.
The positive sales development was also supported by currency effects, largely from the U.S. dollar and the Chinese renminbi.
In the Dispersions & Resins division, portfolio effects in particular had a significant offsetting effect, primarily from the disposal of the global pigments business as of June 30, 2021. The Performance Chemicals division recorded slightly negative portfolio effects, mainly due to the divestiture of the kaolin minerals business effective September 30, 2022.
The segment’s sales development was also dampened by slightly lower volumes. Lower demand reduced volumes in both operating divisions.
|
|
2022 |
2021 |
+/– |
||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sales to third parties |
|
9,992 |
8,876 |
12.6% |
||||||||||
of which Dispersions & Resins |
|
6,019 |
5,681 |
6.0% |
||||||||||
Performance Chemicals |
|
3,973 |
3,195 |
24.3% |
||||||||||
Intersegment transfers |
|
507 |
420 |
20.7% |
||||||||||
Sales including transfers |
|
10,499 |
9,296 |
12.9% |
||||||||||
Income from operations before depreciation, amortization and special items |
|
1,437 |
1,343 |
7.0% |
||||||||||
Income from operations before depreciation and amortization (EBITDA) |
|
1,443 |
1,344 |
7.4% |
||||||||||
EBITDA margin |
% |
14.4 |
15.1 |
− |
||||||||||
Depreciation and amortizationa |
|
346 |
380 |
–8.8% |
||||||||||
Income from operations (EBIT) |
|
1,097 |
965 |
13.7% |
||||||||||
Special items |
|
6 |
–42 |
. |
||||||||||
EBIT before special items |
|
1,091 |
1,006 |
8.4% |
||||||||||
Return on capital employed (ROCE) |
% |
16.0 |
15.2 |
− |
||||||||||
Assets |
|
6,318 |
6,302 |
0.2% |
||||||||||
Investments including acquisitionsb |
|
322 |
361 |
–10.8% |
||||||||||
Research and development expenses |
|
172 |
175 |
–1.5% |
||||||||||
|
||||||||||||||
Industrial Solutions – sales
By division
The segment’s income from operations (EBIT) before special items rose slightly compared with the previous year. This was attributable to earnings growth in the Performance Chemicals division, largely from higher margins due to price increases. By contrast, EBIT before special items was slightly lower in the Dispersions & Resins division. This was mainly attributable to the sale of the global pigments business, lower volumes and higher fixed costs. This could only be partially offset by price-driven margin growth.
EBIT rose by €132 million compared with 2021 to €1,097 million. This included special income from the divestiture of the production site in Quincy, Florida, and the associated attapulgite business. Special charges resulted mainly from the discontinuation of our business activities in Russia.
Divisions |
Europe |
North America |
Asia Pacific |
South America, Africa, Middle East |
Total (million €) |
|---|---|---|---|---|---|
Dispersions & Resins |
38% |
26% |
29% |
7% |
6,019 |
Performance Chemicals |
36% |
26% |
26% |
12% |
3,973 |