54 Business Development
A main reason for this decrease was the ongoing reduction
of oil and gas exploration activities. In the course of the
year, the development of new wells declined again due to
the lower crude oil prices compared to the previous year.
Furthermore, U.S. customers’ demand for our products and
services was weaker, particularly in the first half of 2016.
In the second half of the year, however, the demand situation
improved steadily in the region. Sales in Brazil and
other
important
Latin American markets did not reach the
previous year’s levels. Overall, the Americas accounted
for 28 % of global Group sales in 2016 (previous year:
29 %).
In 2016, Asia was responsible for 31 % of Group sales
(previous year: 30 %). Recording operating growth of
8 %, Asia was the biggest growth driver of all the regions in
the past fiscal year. With operating growth amounting
to 11 %, the development of sales in China was particularly
strong. And with a 16 % share of total sales, China is
the Group’s second-largest sales market. Other Asian countries
also made positive contributions to the sales growth,
most notably India and Japan with growth rates of 9 % and
15 % respectively.
Sales Performance of BYK Additives & Instruments
In 2016, the BYK division increased its sales by 4 %, or
€ 39.1 million, to € 909.1 million (previous year: € 870.0 million).
However, the sales growth due to the integration
of the Addcomp companies was offset by slightly negative
exchange-rate effects. Adjusted for these effects, the
operating
sales growth was also 4 %.
In the course of the year, BYK benefitted from sales
shifts to higher-priced products. But the sales volume hardly
changed in a year-to-year comparison. A decrease in de-
mand for rheology additives, which are used, among other
things, in oil and gas exploration activities, was compen-
sated for by a positive development in other fields of business.
The division’s strongest sales segment, additives for the
coatings and paint industry, successfully expanded its business
activities. In addition, the demand for the division’s mea-
suring and testing instruments was above average.
In terms of regions, the division’s growth was driven by
Asia, and especially by growing demand among customers
in BYK’s second-largest sales market, China. Substantial sales
growth was also generated in other important Asian coun-
tries, most notably in Japan and India. Sales in Europe did not
grow at the same pace as the Asian growth region. But
BYK was able to record growing demand in all of the important
European markets. Only in Great Britain and a few
other small sales markets did sales fail to reach the previous
year’s level. Sales decreased in the Americas, dropping
most significantly in our largest single market, the U.S. The
Sales by region
1
4
2
3
28.3 %
31.4 %
38.5 %
1.8 %
in € million 2015 2016 Δ % Δ % op.
1 Europe 795.6 798.6 0 2
thereof Germany 269.8 263.2 - 2 1
2 Americas 607.1 587.2 - 3 - 4
thereof U.S. 416.1 398.8 - 4 - 5
3 Asia 618.9 652.3 5 8
thereof China 315.6 336.0 6 11
4 Other regions 37.7 37.2 - 2 - 1
Total 2,059.3 2,075.3 1 2