Industrial Solutions

Q2 2020

In the Industrial Solutions segment, sales in both divisions declined considerably compared with the prior-year quarter.

Factors influencing sales in Q2 2020 – Industrial Solutions

 

Industrial Solutions

Dispersions & Pigments

Performance Chemicals

Volumes

(11%)

(7%)

(17%)

Prices

(4%)

(5%)

(2%)

Portfolio

0%

0%

(1%)

Currencies

0%

0%

0%

Sales

(15%)

(12%)

(20%)

The decrease was primarily due to significantly lower volumes in both divisions. The development of sales volumes in the Performance Chemicals division was negatively impacted by weak demand, especially in the fuel and lubricant solutions and oilfield chemicals businesses. In the Dispersions & Pigments division, higher semiconductor volumes in the electronic materials business were unable to offset lower volumes in all other business areas.

Slightly lower prices in both divisions, but especially in the Dispersions & Pigments division, also contributed to the sales decrease. Price levels declined, mainly due to lower raw materials prices.

Portfolio effects in the Performance Chemicals division from the divestiture of inge GmbH as of December 31, 2019, had a slightly negative impact on sales.

Income from operations (EBIT) before special items in both divisions decreased considerably compared with the prior-year quarter. This was mainly driven by the development of volumes. Slightly lower fixed costs had an offsetting effect in both divisions.

Segment data – Industrial Solutions (Million €)

 

Q2

H1

 

2020

2019

+/–

2020

2019

+/–

a

Depreciation and amortization of property, plant and equipment and intangible assets (including impairments and reversals of impairments)

b

Additions to property, plant and equipment and intangible assets

Sales to third parties

1,819

2,141

(15%)

3,917

4,327

(9%)

of which Dispersions & Pigments

1,173

1,336

(12%)

2,474

2,656

(7%)

Performance Chemicals

646

805

(20%)

1,443

1,671

(14%)

Income from operations before depreciation, amortization and special items

280

342

(18%)

623

720

(13%)

Income from operations before depreciation and amortization (EBITDA)

225

329

(32%)

560

853

(34%)

Depreciation and amortizationa

92

101

(9%)

187

218

(14%)

Income from operations (EBIT)

133

228

(42%)

373

635

(41%)

Special items

(30)

(15)

(100%)

(63)

128

.

EBIT before special items

163

243

(33%)

436

507

(14%)

Assets (June 30)

6,983

7,193

(3%)

6,983

7,193

(3%)

Investments including acquisitionsb

68

98

(31%)

135

182

(26%)

Research and development expenses

43

47

(9%)

88

96

(8%)