dollars to 85 U.S. dollars. Hence the increasing price trend
that began in mid-2017 basically continued. But this development
was not uniform. There was high volatility and
repeated phases in which the price moved laterally or fell
slightly. In the months to follow, from October to Decem-
ber, however, the price decreased strongly, closing the year
at around 55 U.S. dollars. Nevertheless, the average price
in 2018 was significantly higher than in the previous year.
Important Events for Business Development
In 2018, non-operating effects influenced ALTANA’s earnings
and financial situation as well as its assets.
Acquisitions in 2017 of U.S. and German PolyAd companies
(BYK division), of Solvay’s insulating resin business,
and a further acquisition of wire enamel activities in China
(both by the ELANTAS division) again had positive effects
on sales and earnings in 2018, because these activities were
included in the financial statements for a full fiscal year for
the first time. In addition, the successful acquisition of novel
technologies in 2017, which are to be developed to the
stage of market readiness in the coming years, also influenced
the Group’s key performance indicators in 2018.
Of primary importance in this context is the acquisition of
metallography technology from the Israeli company Landa
Labs.
In 2018, the development of exchange rates between
the euro, the Group currency, and other currencies important
for ALTANA had a negative effect on sales and earnings
development. The average exchange rate of 1.18 U.S.
dollars for one euro was higher than in the previous year
(1.13 U.S. dollar for a euro). Effects from changed exchange
rate relations also resulted from a further increase in
the average exchange rate between the euro and the
Chinese renminbi from 7.63 renminbi to 7.81 renminbi for
one euro. Other currencies important for key business
figures also changed in relation to the Group currency, the
euro. The effects from the translation of financial stateprevious
54 Business Development
year to 6.6 % in 2018. Growth in India, however,
rose, from 6.7 % in 2017 to 7.3 % last year. Together with the
countries of the ASEAN-5 economic region, these nations
continue to constitute the basis of the development in the
entire Asian economic area. But growth in Japan slowed,
decreasing from 1.9 % to 0.9 %.
Industry-Specific Framework Conditions
According to estimates by the American Chemistry Council
(ACC), global chemical manufacture increased by 2.8 %
in the past fiscal year, achieving lower growth than in the
previous year (2017: 3.2 %).
In 2018, the production volume in Germany, Europe’s
largest chemical manufacturer, decreased (excluding the
pharmaceutical industry) by 1.5 % according to estimates by
the German Chemical Industry Association, although producer
prices increased. According to the ACC, other European
countries that are important for the chemical industry also
exhibited a clear slowdown in chemical production growth,
including France and Italy.
In the U.S., chemical production increased to 3.1 % (previous
year: 2.6 %) against the backdrop of improved
macroeconomic conditions. In Latin America, chemical manufacture
showed a constant development vis-à-vis the
previous year after a few recessive years.
The chemical sector in the Asia-Pacific region was again
the biggest driver of global growth. The ACC estimates that
chemical production in the region grew in 2018 by 3.2 %,
which, however, lagged behind the strong growth in the
previous year (3.9 %). The loss of momentum is primarily
due to the development of chemical production in China,
whose growth decreased from 4.2 % in the previous year to
only 2.5 % in 2018. By contrast, chemical manufacture
increased
in Korea and India, with growth of 5.2 % and
6.5 %, respectively.
From the beginning of the year to the end of the third
quarter, the price of a barrel of crude oil rose from 66 U.S.