Industrial Solutions

Q3 2019

In the Industrial Solutions segment, sales were considerably below the figure for the prior-year quarter due to developments in the Performance Chemicals division. Sales in the Dispersions & Pigments division matched the level of the prior-year quarter.

Factors influencing sales in Q3 2019 – Industrial Solutions

 


Industrial Solutions

Dispersions & Pigments

Performance Chemicals

Volumes

 

0%

0%

1%

Prices

 

(2%)

(2%)

(2%)

Portfolio

 

(9%)

0%

(21%)

Currencies

 

3%

2%

2%

Sales

 

(8%)

0%

(20%)

The decline in sales largely reflected the transfer of BASF’s paper and water chemicals business, which was previously reported under Performance Chemicals, to the Solenis group as of January 31, 2019. Sales were also reduced by slightly lower prices in both divisions. Positive currency effects in both divisions, mainly from the U.S. dollar, and slightly higher volumes in the Performance Chemicals division, especially for fuel and lubricant solutions, had an offsetting effect.

We considerably increased income from operations (EBIT) before special items compared with the third quarter of 2018. This was primarily the result of lower fixed costs in both divisions.

Segment data – Industrial Solutions (Million €)

 

 

Q3

January–September

 

 

2019

2018

+/–

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

 

2,130

2,325

(8%)

6,457

6,913

(7%)

of which Dispersions & Pigments

 

1,335

1,333

0%

3,991

4,053

(2%)

Performance Chemicals

 

795

992

(20%)

2,466

2,860

(14%)

Income from operations before depreciation, amortization and special items

 

316

267

18%

1,036

920

13%

Income from operations before depreciation and amortization (EBITDA)

 

317

259

22%

1,170

924

27%

Depreciation and amortizationa

 

110

103

7%

328

313

5%

Income from operations (EBIT)

 

207

156

33%

842

611

38%

Special items

 

2

(8)

.

130

4

.

EBIT before special items

 

205

164

25%

712

607

17%

Assets (September 30)

 

7,178

7,606

(6%)

7,178

7,606

(6%)

Investments including acquisitionsb

 

109

94

16%

291

276

5%

Research and development expenses

 

49

56

(13%)

145

163

(11%)