Industrial Solutions

Q1 2020

In the Industrial Solutions segment, sales declined slightly compared with the prior-year quarter. The Performance Chemicals division recorded a considerable sales decrease. Sales in the Dispersions & Pigments division were slightly below the level of the first quarter of 2019.

The sales decrease largely resulted from the transfer of BASF’s paper and water chemicals business to the Solenis group as of January 31, 2019. It was previously reported under Performance Chemicals. In addition, prices declined slightly in both divisions as a result of lower raw materials prices.

By contrast, sales volumes rose slightly in both divisions, especially in the Performance Chemicals division. Volumes growth here was primarily driven by higher sales volumes of plastic additives.

Positive currency effects in both divisions, mainly relating to the U.S. dollar, also had a positive impact on sales.

Overall, we slightly increased income from operations (EBIT) before special items compared with the prior-year quarter. This was attributable to a considerable improvement in the Dispersions & Pigments division, mainly as a result of lower fixed costs. By contrast, EBIT before special items declined slightly in the Performance Chemicals division, primarily due to the transfer of the paper and water chemicals business to the Solenis group as of January 31, 2019. This could not be completely offset by the increase in sales volumes.