Merck 2014 Annual Report Download - page 114

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109GROUP MANAGEMENT REPORT → REPORT ON ECONOMIC POSITION → Performance Materials
PERFORMANCE MATERIALS
PERFORMANCE MATERIALS →
KEY FIGURES
€ million 2014 2013
Change
in %
Total revenues 2,060.5 1,644.4 25.3
Sales 2,059.6 1,642.1 25.4
Operating result (EBIT) 611.5 653.3 – 6.4
Margin (% of sales) 29.7 39.8
EBITDA 803.6 765.8 4.9
Margin (% of sales) 39.0 46.6
EBITDA pre one-time items 894.8 779.7 14.8
Margin (% of sales) 43.4 47.5
Business free cash flow 699.6 787.8 –11.2
Development of sales and results of operations
In 2014, sales of the Performance Materials division grew by 25.4 %
to € 2,060 million (2013: € 1,642 million). Both solid organic
growth of 4.1 % as well as acquisition-related sales increases of
22.8 % or €375 million contributed to this increase. Adverse foreign
exchange effects lowered sales by –1.5 %. Organic growth was
delivered by all the existing business units, namely Liquid Crystals,
Pigments & Cosmetics and Advanced Technologies, with Liquid
Crystals making the largest absolute contribution to sales growth.
The acquisition-related sales growth was due to the first-time con-
solidation of AZ as of May 2, 2014, the integration of which has
been completed.
The Liquid Crystals business unit again maintained its market
leadership position in liquid crystal materials in 2014. The two
leading technologies (PS-VA and IPS) registered strong organic
sales growth thanks to continued demand for high-quality (e.g.
ultra high-definition) and large-size televisions. This growth was
also bolstered by sales volume developments of the new UB-FFS
technology, which is mainly used in smartphones and tablet PCs.
Higher sales volumes were partly offset by the customary price
declines for liquid crystals.
The Pigments & Cosmetics business unit achieved slight organic
sales growth in 2014. Xirallic® pigments, which are primarily used
in automotive coatings, as well as technical functional materials
were the main drivers. Including negative currency effects, sales
of the Pigments & Cosmetics business unit reached the year-earlier
level.
Thanks to higher demand for OLED displays, the Advanced
Technologies business unit made a good contribution to the organic
growth of the division.