Annual Report 2013

Adhesive Technologies

Business areas

In the following, we comment on the organic sales performance of our business areas.

Industrial Adhesives

We posted a solid increase in sales in the Packaging and Consumer Goods Adhesives business. Performance was especially driven by adhesives for the production of flexible packaging. From a regional perspective, we recorded a strong increase in the emerging markets, and we achieved positive performance in the mature markets as well. Close cooperation with customers, strategic partnerships such as our global alliance with US-based Nordson Corporation, and our pan-European initiative for food safe packaging all made decisive contributions to our solid growth in sales.

The Transport and Metal business showed the highest increase in sales and posted strong organic growth. Particularly successful performance was demonstrated by our surface treatment products and our structural adhesives for use in automotive construction. All regions contributed to sales growth. Our innovative solutions for automotive construction, such as our matrix resin Loctite MAX 2 for the series production of lightweight components, delivered an important stimulus in the market.

The performance of our General Industry business was also positive compared to the prior year. Products for use in vehicle repair and maintenance made a significant contribution to this performance. Particularly high growth rates were achieved in the emerging markets of Asia and Latin America. Our special training programs for the users of our products were an additional driver of the positive performance posted.

The Electronics business was unable to achieve the sales level of the previous year. Performance was affected by the shift in consumer demand from personal computers to mobile devices that require fewer semiconductors than PCs. On the other hand, we were able to generate momentum through innovations, such as new solutions in the field of touch-sensitive sensor applications, and innovative heat-conducting films that meet the rising requirements for heat dissipation in ever smaller mobile devices.

Adhesives for Consumers, Craftsmen and Building

Sales performance in the Adhesives for Consumers, Craftsmen and Building business was solid compared to the previous year. Performance by products for home improvement and repair was especially gratifying. The launch of the innovative composite system Ceresit Impactum for external thermal insulation stimulated business in the building industry in particular.