Specialty Chemicals

  • Volumes up 1 percent with positive developments in Industrial Chemicals partly offset by lower demand in oil related segments
  • Revenues down 7 percent due to the divestment of the Paper Chemicals business, price deflation and adverse currency effects
  • EBIT and operating income up 1 percent, due to operational efficiencies and lower costs offsetting the effects of price deflation and adverse currencies
  • ROS* increased to 13.6 percent (2015: 12.6 percent); ROI* increased to 16.5 percent (2015: 15.3 percent)

Revenue was down 7 percent due to the divestment of the Paper Chemicals business, price deflation in several segments and adverse currency effects. Volumes were up 1 percent with positive developments in some segments partly offset by lower demand in oil related segments.

EBIT and operating income was up 1 percent, due to operational efficiencies and lower costs offsetting the effects of price deflation and adverse currencies.

Revenue

First quarter

 

 

 

in € millions

2015

2016

∆%

*

ROS% = EBIT/Revenue. Moving average ROI (in %) = EBIT/12 months average invested capital

Functional Chemicals

464

436

(6)

Industrial Chemicals

308

299

(3)

Surface Chemistry

277

258

(7)

Pulp and Performance Chemicals

273

234

(14)

Other/intragroup eliminations

(26)

(21)

 

Total

1,296

1,206

(7)

 

 

 

 

Operating income

163

164

1

EBIT (operating income excluding incidental items)

163

164

1

ROS% *

12.6

13.6

 

 

 

 

 

Average invested capital

3,509

3,500

 

Moving average ROI (in %) *

15.3

16.5

 

 

 

 

 

EBITDA

242

245

1

Capital expenditures

56

63

 

Number of employees

9,600

9,100

 

Revenue development Q1 2016

Specialty Chemicals – Revenue development Q1 2016 (bar chart)Specialty Chemicals – Revenue development Q1 2016 (bar chart)

Functional Chemicals

Revenue was down 6 percent, mainly due to formula based price deflation and adverse currency effects. Volumes remained flat. Production output was still impacted by the interruptions in the manufacturing and supply chain in Tianjin, affecting comparison versus Q1 2015. Availability improved compared with Q4 2015.

Industrial Chemicals

Revenue was down 3 percent with positive volume development offset by adverse price/mix effects. Volumes were higher mainly due to increased manufacturing availability in Frankfurt and Rotterdam.

Surface Chemistry

Revenue was down 7 percent reflecting lower demand and price deflation in oil related segments, especially in the Americas. Demand trends differed per region and were positive for Asia.

Pulp and Performance Chemicals

Revenue, excluding the impact of the divested Paper Chemicals business, was down 3 percent mainly due to adverse currency effects. Volume developments in Brazil and several segments in Europe remained positive.

Together with Evonik Industries, AkzoNobel broke ground on a production joint venture for chlorine and potassium hydroxide solution at the existing AkzoNobel location in Ibbenbüren, Germany. A new membrane electrolysis plant is being built which will improve the ecological footprint of every ton of chlorine we produce in Ibbenbüren by 25 to 30 percent. This will result in less energy use and fewer CO2 emissions. (Photo)

Together with Evonik Industries, AkzoNobel broke ground on a production joint venture for chlorine and potassium hydroxide solution at the existing AkzoNobel location in Ibbenbüren, Germany. A new membrane electrolysis plant is being built which will improve the ecological footprint of every ton of chlorine we produce in Ibbenbüren by 25 to 30 percent. This will result in less energy use and fewer CO2 emissions.