Performance Chemicals

Performance Chemicals
   
  Q2 2013 Q2 2014 Change H1 2013 H1 2014 Change
  € million Margin
 %
€ million Margin
 %
% € million Margin
 %
€ million Margin
 %
%
           
Sales 561   569   1.4 1,081   1,119   3.5
EBITDA pre exceptionals 67 11.9 86 15.1 28.4 118 10.9 154 13.8 30.5
EBITDA 34 6.1 83 14.6 > 100 84 7.8 141 12.6 67.9
Operating result (EBIT) pre exceptionals 45 8.0 63 11.1 40.0 75 6.9 111 9.9 48.0
Operating result (EBIT) 6 1.1 60 10.5 > 100 35 3.2 98 8.8 > 100
Cash outflows for capital expenditures 34   18   (47.1) 53   28   (47.2)
Depreciation and amortization 28   23   (17.9) 49   43   (12.2)
Employees as of June 30
(previous year: as of Dec. 31)
5,837   5,716   (2.1) 5,837   5,716   (2.1)
   

Sales in the Performance Chemicals segment rose by 1.4% in the second quarter, to €569 million. With selling prices up slightly against the prior-year quarter, the development of volumes in particular had a positive effect of 3.7% on sales. A positive portfolio effect of 0.4% from the acquisition of the phosphorus chemicals business of Thermphos France S.A.R.L., Epierre, France, was not sufficient to offset negative currency effects of 3.0%.

Overall, the segment’s volumes and selling prices were above the level of the prior-year quarter, although the individual business units trended differently. The Leather, Material Protection Products, Rhein Chemie and Inorganic Pigments business units benefited particularly from a growth in volumes. The Functional Chemicals, Rubber Chemicals and Liquid Purification Technologies business units raised selling prices, while there were no major price effects on sales of the remaining business units. The development of exchange rates had a negative impact in all of the segment’s business units. Business expanded in the Asia-Pacific, Germany and EMEA (excluding Germany) regions, while sales declined in North and Latin America.

EBITDA pre exceptionals in the Performance Chemicals segment advanced by a substantial 28.4% from the prior-year level of €67 million, to €86 million. This increase resulted particularly from the positive volume development. Earnings were improved by a slightly favorable price effect and cost relief from lower raw material purchase prices. The slightly negative portfolio effects were more than offset by exchange rate developments, a positive currency effect on the cost base outweighing the negative effect on sales due to geographical variations in the currency effects. The EBITDA margin pre exceptionals improved from 11.9% to 15.1%.

The Performance Chemicals segment posted sales of €1,119 million in the first half of 2014, up 3.5% from the same period a year ago. Volumes expanded by 5.8%, while selling prices were level with the prior-year period. A portfolio effect of 0.5% was far more than offset by adverse exchange rate movements of 3.1%.

The segment generated EBITDA pre exceptionals of €154 million in the first six months of 2014, against €118 million in the prior-year period. The EBITDA margin pre exceptionals increased from 10.9% to 13.8%.

The segment had exceptional items of €3 million in the second quarter and €13 million in the first half of 2014, with the entire amount impacting EBITDA. As in the previous year, they mainly resulted from measures within the Advance program.