Industrial Solutions

Q2 2019

Sales in the Industrial Solutions segment declined considerably compared with the second quarter of 2018, especially in the Performance Chemicals division. We recorded a slight decrease in sales in the Dispersions & Pigments division.

Sales development largely reflected the transfer of BASF’s paper and water chemicals business, which was previously reported under Performance Chemicals, to the Solenis group. Volumes were slightly below the level of the prior-year quarter. Slightly higher sales volumes in the Performance Chemicals division, especially for fuel and lubricant solutions, were offset by slightly lower volumes in the Dispersions & Pigments division. Prices were on a level with the second quarter of 2018. Positive currency effects in both divisions, mainly relating to the U.S. dollar, had a positive impact on sales.

We considerably increased income from operations (EBIT) before special items in both divisions compared with the second quarter of 2018, primarily as a result of improved margins and lower fixed costs. In the Dispersions & Pigments division, margins rose due to lower raw materials prices and positive currency effects amid stable sales prices. Lower fixed costs also contributed to the improvement in earnings. Driving factors in the Performance Chemicals division were lower fixed costs due to the transfer of our paper and water chemicals business to the Solenis group and in the remaining business, as well as higher volumes.