Functional Materials & Solutions

1st Quarter 2018

Sales in the Functional Materials & Solutions segment were slightly lower than in the prior-year quarter. This was due to negative currency effects, which could not be completely offset by higher prices and slight volumes growth. Income from operations (EBIT) before special items declined considerably as a result of lower margins and higher fixed costs.

Factors influencing sales, Functional Materials & Solutions
1st quarter 2018

Catalysts

Sales in the Catalysts division rose slightly, primarily due to significantly higher prices. Higher volumes in precious metal trading as well as in the chemical and refining catalysts and battery materials businesses contributed to the sales increase. Currency effects in particular had a negative impact on sales. In precious metal trading, sales increased to €685 million (first quarter of 2017: €627 million), mainly as a result of higher prices. EBIT before special items declined considerably due, among other factors, to negative currency effects.

Construction Chemicals

The Construction Chemicals division recorded a slight year-on-year decline in sales. This was attributable to negative currency effects. Higher volumes and portfolio effects lifted sales slightly, while prices were on a level with the prior-year quarter. We increased sales in Europe thanks in particular to higher volumes in the admixture systems business. Negative currency effects reduced sales in Asia and in the region South America, Africa, Middle East, despite volumes growth. Currency effects were also the main driver behind the sales decline in North America. EBIT before special items was down considerably on the prior-year quarter, largely as a result of higher raw materials prices.

Coatings

In the Coatings division, sales declined considerably as against the first quarter of 2017. This was due to negative currency effects, which could only be partially offset by higher volumes. We recorded slight volumes growth for automotive OEM coatings, surface treatments and automotive refinish coatings, while sales volumes of decorative paints declined slightly. EBIT before special items declined considerably compared with the prior-year quarter, primarily due to lower margins resulting from negative currency effects and higher raw materials prices.

Performance Materials

Sales in the Performance Materials division were down slightly on the first quarter of 2017, mainly due to currency effects. Declining volumes also had a dampening effect on sales, particularly in the styrene foams business as a result of plant maintenance. Our price increases were only able to partially offset the higher raw materials prices. EBIT before special items declined considerably year on year as a result of lower margins and higher fixed costs due to the maintenance mentioned above and the startup of new plants.