Industrial Solutions

Q3 2020

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

The sales development was due to lower prices, mainly as a result of the decline in raw materials prices. Slightly lower volumes, particularly in the Performance Chemicals division, also contributed to the sales decrease. Volumes declined significantly here, especially in the fuel and lubricant solutions and oilfield chemicals businesses. In the Dispersions & Pigments division, higher volumes of semiconductor chemicals in the electronic materials business only partly offset lower volumes in the other business areas.

Sales were also reduced by slightly negative currency effects, mainly relating to the U.S. dollar.

Income from operations (EBIT) before special items was slightly below the level of the prior-year quarter. This was mainly due to the considerable decrease in EBIT before special items in the Performance Chemicals division, which in turn was largely attributable to the development of sales volumes. Lower fixed costs had an offsetting effect.

We slightly increased EBIT before special items in the Dispersions & Pigments division compared with the third quarter of 2019. Lower fixed costs more than offset the decline in margins due to lower sales.

EBIT for the third quarter of 2020 included special impairment charges, mainly as a result of the decline in production as well as the expected slow recovery in the automotive industry due to the effects of the coronavirus pandemic.

Compared with the previous quarter, sales were slightly higher in the Industrial Solutions segment as a result of sales growth in the Dispersions & Pigments division. EBIT before special items rose considerably quarter on quarter in the Performance Chemicals division and increased slightly in the Dispersions & Pigments division.