In 2013, the division’s cost of sales decreased by –14% to € 616 million (2012: € 716 million). This decline was primarily attributable to a more favorable product mix in liquid crystal materials as well as to efficiency improvements in the Pigments & Cosmetics business unit achieved within the scope of the “Fit for 2018” transformation and growth program. In comparison with 2012, gross profit thus grew by 7.2% to € 1,028 million (2012: € 959 million). This led to a significantly higher gross margin as a percentage of sales, which rose by more than five percentage points to 62.6% (2012: 57.3%).
Marketing and selling expenses declined slightly by –1.6% to € 141 million (2012: € 143 million), and administration expenses dropped by –10.7% to € 28 million (2012: € 31 million). R&D expenses rose by 4.1% to € 143 million (2012: € 137 million). The Liquid Crystals business unit, which maintained its market position thanks to innovations and the further development of existing technologies, accounted for the vast majority of research and development spending. As a percentage of sales, R&D expenses therefore increased to 8.7% (2012: 8.2%). In 2013, the net rise in other operating expenses to € 48 million (2012: € 32 million) was mainly due to the disposal of intangible assets as well as to an increase in one-time items.
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