Surface Technologies

Q1 2020

Sales in the Surface Technologies segment rose considerably compared with the first quarter of 2019. Considerable sales growth in the Catalysts division more than offset the considerable decline in the Coatings division.

The increase in sales was largely due to higher prices in the Catalysts division as a result of higher precious metal prices. Prices in the Coatings division were on a level with the prior-year quarter.

Considerably higher volumes in the Catalysts division also contributed to the sales development. Here, sales volumes developed positively for mobile emissions catalysts and battery materials and in precious metal trading. This more than offset lower volumes in the chemical and refining catalysts business. In precious metal trading, sales rose to €2,278 million (first quarter of 2019: €1,064 million) as a result of higher prices and volumes. Volumes development in the Coatings division, especially in the automotive OEM coatings business, was significantly depressed by weaker demand from the automotive industry due to the effects of the corona pandemic. Volumes were also significantly lower in the surface treatments and automotive refinish coatings businesses. Sales volumes in the decorative paints business declined slightly.

Currency effects in the Catalysts division had a positive impact on sales.

We achieved considerable year-on-year growth in income from operations (EBIT) before special items due to a considerably higher contribution from the Catalysts division as a result of valuation effects in precious metal trading. The Coatings division recorded considerably lower EBIT before special items. Lower raw materials prices and lower fixed costs were unable to offset the decline in volumes as a consequence of the corona pandemic.