Regions

Q3 2020

Sales at companies located in Europe declined by 12% compared with the third quarter of 2019. This was primarily due to lower volumes, especially in Other and in the Materials segment. Sales were also negatively impacted by lower prices, particularly in the Chemicals and Materials segments, and negative currency effects in all segments. Offsetting factors were higher price levels in the Surface Technologies segment and portfolio effects, mainly in the Materials segment from the acquisition of Solvay’s integrated polyamide business. At minus €1,557 million, income from operations (EBIT) was down €2,342 million from the prior-year quarter. This was due to significantly lower contributions from all segments and Other, mainly as a result of impairments.

Compared with the prior-year quarter, sales in North America declined by 6% in euros and 1% in local currency terms. This was mainly driven by lower volumes, especially in the Chemicals segment due to the unplanned outage at the steam cracker in Port Arthur, Texas. Negative currency effects in all segments also contributed to the sales decrease. Higher price levels in the Surface Technologies segment and portfolio effects in the Materials segment had an offsetting impact. EBIT declined by €1,093 million to minus €1,046 million. This was attributable to significantly lower contributions from all segments due to impairments, among other factors, especially from the Chemicals, Agricultural Solutions and Surface Technologies segments.

Compared with the third quarter of 2019, we improved sales in the Asia Pacific region by 10% in euros and 15% in local currency terms. This was largely attributable to higher volumes in almost all segments. Higher price levels, especially in the Surface Technologies segment, also contributed to sales growth. In addition, sales in the Materials segment were positively impacted by portfolio effects. Negative currency effects in all segments had an offsetting impact. EBIT declined by €482 million compared with the prior-year quarter to minus €177 million, mainly due to impairments. The decrease was primarily the result of considerably lower EBIT in the Surface Technologies and Chemicals segments.

In the region South America, Africa, Middle East, sales in euros were down 9% from the prior-year quarter. In local currency terms, by contrast, they rose by 23%. This was primarily due to negative currency effects in all segments, especially in the Agricultural Solutions segment. Higher prices, especially in the Agricultural Solutions and Surface Technologies segments, had an offsetting effect. Sales were also positively impacted by volumes growth, particularly in the Agricultural Solutions segment, and portfolio effects in the Materials segment. EBIT decreased by €57 million to €142 million. This was the result of significantly lower contributions from Other and from the Agricultural Solutions, Nutrition & Care and Industrial Solutions segments.