Industrial Solutions

Q1 2019

In the Industrial Solutions segment, sales were slightly below the figure for the prior-year quarter. Sales in the Dispersions & Pigments division were on a level with the first quarter of 2018, while sales in the Performance Chemicals division declined slightly.

Factors influencing sales in Q1 2019 – Industrial Solutions

 

 

Industrial Solutions

Dispersions & Pigments

Performance Chemicals

Volumes

 

(2%)

(5%)

3%

Prices

 

2%

2%

2%

Portfolio

 

(5%)

0%

(13%)

Currencies

 

3%

3%

3%

Sales

 

(2%)

0%

(5%)

The year-on-year decrease was primarily due to the transfer of BASF’s paper and water chemicals business, which was previously reported under Performance Chemicals, to the Solenis group. In addition, volumes declined in the Dispersions & Pigments division. By contrast, we increased our sales volumes in the Performance Chemicals division, especially of oilfield and mining chemicals as well as fuel and lubricant solutions. Sales development was also positively influenced by currency effects, primarily relating to the U.S. dollar, as well as higher prices in both divisions.

We considerably increased income from operations (EBIT) before special items compared with the first quarter of 2018. This was primarily attributable to considerably higher EBIT before special items in the Performance Chemicals division as a result of higher prices, volumes growth and positive currency effects. The Dispersions & Pigments division also slightly increased EBIT before special items, mainly due to higher prices and positive currency effects.

EBIT included special income in the Performance Chemicals division from the transfer of BASF’s paper and water chemicals business to the Solenis group.

Segment data – Industrial Solutions (Million €)

 

 

Q1

 

 

2019

2018

+/–

a

Amortization of intangible assets and depreciation of property, plant and equipment (including impairments and reversals of impairments)

b

Additions to intangible assets and property, plant and equipment

Sales to third parties

 

2,186

2,240

(2%)

of which Dispersions & Pigments

 

1,320

1,324

0%

Performance Chemicals

 

866

916

(5%)

Income from operations before depreciation, amortization and special items

 

378

337

12%

Income from operations before depreciation and amortization (EBITDA)

 

524

355

48%

Depreciation and amortizationa

 

117

107

9%

Income from operations (EBIT)

 

407

248

64%

Special items

 

143

18

.

EBIT before special items

 

264

230

15%

Assets (March 31)

 

7,156

7,347

(3%)

Investments including acquisitionsb

 

84

78

8%

Research and development expenses

 

49

53

(8%)