Specialty Chemicals

  • Volumes flat with positive developments in some segments offset by lower demand in oil related segments
  • Revenue down 7 percent, due to adverse currency effects, divestments and price deflation in several segments
  • EBIT up 10 percent mostly due to operational efficiencies and lower costs
  • ROS increased to 14.8 percent (2015: 12.6 percent); ROI increased to 17.1 percent (2015: 16.1 percent)

Volumes were flat with positive developments in some segments offset by lower demand in oil related segments. Revenue was down 7 percent mainly due to adverse currency effects, divestments and price deflation in several markets.

EBIT was up 10 percent due to operational efficiencies and lower costs, while price deflation and adverse currencies also affected the results. In Q2 2015 the divestment of the Paper Chemicals business was closed and resulted in a book profit net of related costs of €30 million reported in operating income.

Revenue

Second quarter

 

January-June

2015

2016

∆%

in € millions

2015

2016

∆%

*

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

497

445

(10)

Functional Chemicals

961

881

(8)

284

293

3

Industrial Chemicals

592

592

282

266

(6)

Surface Chemistry

559

524

(6)

252

223

(12)

Pulp and Performance Chemicals

525

457

(13)

(25)

(21)

 

Other/intragroup eliminations

(51)

(42)

 

1,290

1,206

(7)

Total

2,586

2,412

(7)

 

 

 

 

 

 

 

192

179

(7)

Operating income

355

343

(3)

162

179

10

EBIT

325

343

6

12.6

14.8

 

ROS% *

12.6

14.2

 

 

 

 

 

 

 

 

 

 

 

Average invested capital

3,557

3,477

 

 

 

 

Moving average ROI (in %) *

16.1

17.1

 

 

 

 

 

 

 

 

59

84

 

Capital expenditures

115

147

 

 

 

 

Number of employees

9,200

9,000

 

Revenue development Q2 2016

Specialty Chemicals – Revenue development Q2 2016 (bar chart)Specialty Chemicals – Revenue development Q2 2016 (bar chart)

Functional Chemicals

Volumes were down 3 percent compared with a strong previous year. Revenue was down 10 percent, mainly due to price deflation, lower volumes and adverse currency effects.

Industrial Chemicals

Volumes were higher mainly due to increased manufacturing availability in Frankfurt and Rotterdam. Revenue was up 3 percent with higher volumes partly offset by adverse price/mix effects.

Surface Chemistry

Volume development was positive in Europe and Asia. Revenue was down 6 percent due to adverse currencies and price deflation in the oil related segments, especially in the Americas.

Pulp and Performance Chemicals

Volumes in Europe remained positive, while demand in the Americas was subdued partly due to de-stocking of customers. Revenue, excluding the impact of the divested Paper Chemicals business, was down 6 percent mainly due to adverse currency effects.

Winemakers are increasingly turning to corks made with our Expancel Microspheres, which help to ensure that wines are kept as perfect as possible and can be enjoyed as intended. The innovative and versatile product has now been approved by the US Food and Drug Administration as a constituent in wine corks. It has been rapidly growing in popularity with micro-agglomerated wine cork manufacturers, as it helps to overcome some of the weaknesses of traditional cork. (Photo)

Winemakers are increasingly turning to corks made with our Expancel Microspheres, which help to ensure that wines are kept as perfect as possible and can be enjoyed as intended. The innovative and versatile product has now been approved by the US Food and Drug Administration as a constituent in wine corks. It has been rapidly growing in popularity with micro-agglomerated wine cork manufacturers, as it helps to overcome some of the weaknesses of traditional cork.