Regions

Q2 2020

Sales at companies located in Europe declined by 21% compared with the second quarter of 2019. This was largely attributable to lower volumes in almost all segments, but especially in the Materials, Surface Technologies and Industrial Solutions segments. Lower prices, particularly in the Chemicals segment, also contributed to the sales decrease. This could only be partly offset by a higher price level in the Surface Technologies segment. Sales were positively impacted in particular by portfolio effects in the Materials segment attributable to the polyamide business acquired from Solvay. At €24 million, income from operations (EBIT) was down €372 million from the prior-year period. This was due to lower contributions from all segments, but especially from the Materials and Surface Technologies segments.

In North America, sales declined by 10% in euros and 12% in local currency terms. This was mainly the result of lower sales volumes, especially in the Surface Technologies and Materials segments and in Other. Volumes growth, particularly in the Chemicals segment, had an offsetting effect. A higher price level in the Surface Technologies segment due to higher precious metal prices more than offset lower prices in all other segments. Currency effects also had a slightly positive impact on sales. We improved EBIT by €45 million to minus €163 million. This was primarily attributable to significantly higher contributions from the Chemicals, Agricultural Solutions and Nutrition & Care segments.

We were able to increase sales in Asia Pacific by 3% in euros and 4% in local currency terms. This was largely due to higher volumes, especially in the Nutrition & Care and Chemicals segments. Portfolio effects, particularly in the Materials segment from the acquisition of Solvay’s integrated polyamide business, and higher prices in the Surface Technologies segment also contributed to sales growth. Negative currency effects in almost all segments and lower prices, especially in the Materials and Chemicals segments, had an offsetting impact. EBIT declined by €125 million to €180 million due to lower contributions from the Materials and Chemicals segments.

Sales in the region South America, Africa, Middle East declined by 15% in euros but rose by 6% in local currency terms. The decrease was primarily due to negative currency effects in all segments. Sales development was also weighed down by lower sales volumes, especially in the Surface Technologies segment. This was partially offset by a higher price level in the Agricultural Solutions, Nutrition & Care, Surface Technologies, Materials and Industrial Solutions segments. Portfolio effects in the Materials segment attributable to the polyamide business acquired from Solvay also had a positive impact on sales. We increased EBIT by €4 million to €18 million, primarily as a result of higher contributions from the Agricultural Solutions, Chemicals and Nutrition & Care segments.