Business development by region
|Sales by Market|
|Q2 2013||Q2 2014||Change||H1 2013||H1 2014||Change|
|€ million||%||€ million||%||%||€ million||%||€ million||%||%|
|EMEA (excluding Germany)||624||29.1||602||29.8||(3.5)||1,247||29.4||1,220||30.0||(2.2)|
Sales in the EMEA (excluding Germany) region decreased by 3.5% in the second quarter of 2014, to €602 million. Adjusted for currency changes and for portfolio effects from the acquisition of the phosphorus chemicals business of Thermphos France S.A.R.L., Epierre, France, and the divestiture of the company’s interest in Perlon-Monofil GmbH, sales receded by 2.5%. While the Performance Polymers segment saw sales decline by a high-single-digit percentage, business in the Advanced Intermediates and Performance Chemicals segments showed low-single-digit rates of growth. The negative sales development in the region mainly applied to France, Turkey, Belgium, Spain and Italy. By contrast, demand developed positively in the Netherlands, the Czech Republic, the United Kingdom, South Africa and Hungary.
First-half sales in the EMEA (excluding Germany) region fell by 2.2% to €1,220 million. The currency- and portfolio-adjusted decline was 1.7%. The Performance Polymers segment registered a high-single-digit percentage decline in sales. On the other hand, our Advanced Intermediates and Performance Chemicals segments developed positively, posting mid-single-digit percentage gains. Demand developed well in the Netherlands, the Czech Republic, Ireland and South Africa, while sales declines against the year-earlier period were recorded mainly in Turkey, Spain, France and Italy.
With a 29.8% share of total sales for the second quarter and a 30.0% share for the first half, EMEA (excluding Germany) remained the largest of the LANXESS Group’s regions in terms of sales.
Our sales in Germany were nearly level year on year in the second quarter, at €363 million. There were no material portfolio effects. Sales in our Performance Polymers segment were down against the prior-year quarter, while the Advanced Intermediates and Performance Chemicals segments posted clear single-digit percentage gains.
In the first half of 2014, our business in Germany expanded by 1.6% to €744 million. Sales in the Performance Polymers and Advanced Intermediates segments were nearly level with the prior-year period. The Performance Chemicals segment raised sales by a high-single-digit percentage.
Germany’s share of Group sales came to 18.0% for the second quarter and 18.3% for the first half, both figures being slightly ahead of the respective prior-year periods.
Sales in North America moved back by 5.0% in the second quarter of 2014, to €339 million. Adjusted for negative currency effects and minor portfolio effects, sales were down by 0.5%. Business development was marked by a mid-single-digit percentage decline in sales of our Performance Polymers segment. This was not fully offset by a low-double-digit percentage increase in sales of the Advanced Intermediates segment. Business in the Performance Chemicals segment was nearly at the level of the prior-year quarter.
In the first half of 2014, sales in North America decreased by 2.0% to €670 million. Adjusted for currency and portfolio effects, sales rose by 2.1%. All segments registered higher sales, with low-single-digit percentage growth rates.
LANXESS generated 16.8% of second-quarter sales and 16.5% of first-half sales in this region. These were slightly higher shares than in the previous year.
Sales in the Latin America region receded in the second quarter of 2014 by 19.9% against the prior-year period, to €221 million. Adjusted for currency changes, sales fell by 17.4%. The Performance Polymers segment in particular registered a substantial double-digit percentage decline in sales. The Performance Chemicals segment recorded a mid-single-digit sales decrease. Only the Advanced Intermediates saw just a small decrease, with sales close to the level of the prior-year quarter. Development in the region was driven by Brazil, Argentina and Mexico.
First-half sales in the Latin America region declined by 15.9% to €438 million. The currency- and portfolio-adjusted decrease was 12.0%. The lower sales were mainly due to the weaker business development in the Performance Polymers segment. Sales fell by low-single-digit percentages in the Advanced Intermediates and Performance Chemicals segments. The first-half development of operational sales in the region was dominated by Brazil and Argentina.
The region accounted for 10.9% of Group sales in the second quarter and 10.8% in the first half, both figures being below prior-year levels.
Second-quarter sales in the Asia-Pacific region dropped by 5.4% to €494 million. Adjusted for negative currency changes and minor portfolio effects, sales increased by 0.5%. While sales in the Performance Polymers segment declined by a mid-single-digit percentage, business in the Advanced Intermediates segment was only slightly down against the prior-year period. The Performance Chemicals segment experienced positive business development, with sales advancing by a low-double-digit percentage. This operational sales development was mainly driven by India, Singapore and Indonesia. By contrast, we saw lower sales particularly in South Korea, Taiwan and Thailand.
In the first half of 2014, sales in this region receded by 5.9% to €990 million. Adjusted for currency and portfolio effects, the decrease came to 1.2%. The Performance Polymers and Advanced Intermediates segments posted single-digit percentage declines, while the Performance Chemicals segment achieved double-digit sales growth.
Asia-Pacific’s share of Group sales came to 24.5% for the second quarter and 24.4% for the first half, compared with 24.4% and 24.8% for the respective prior-year periods.