Surface Technologies

Q3 2020

Sales in the Surface Technologies segment rose considerably compared with the third quarter of 2019 due to higher sales in the Catalysts division. By contrast, sales declined considerably in the Coatings division.

Sales growth in the Catalysts division was primarily attributable to significantly higher precious metal prices. In precious metal trading, sales rose to €1,709 million (Q3 2019: €1,153 million). Prices rose slightly overall in the Coatings division, mainly in the decorative paints, surface treatments and automotive refinish coatings businesses.

Sales were also positively impacted by slight volumes growth overall. In the Catalysts division, higher sales volumes for mobile emissions catalysts, in precious metal trading and for battery materials more than offset lower volumes for refining catalysts and chemical catalysts. By contrast, volumes declined slightly in the Coatings division, with significant decreases in the surface treatments and automotive refinish coatings businesses. This could only be partly compensated for by significantly higher sales volumes in the decorative paints business.

Significantly negative currency effects had an offsetting impact.

Income from operations (EBIT) before special items declined slightly compared with the prior-year quarter. This was attributable to a considerable decrease in the Coatings division due to the development of sales volumes. Lower fixed costs and lower raw materials prices were unable to offset this. The Catalysts division recorded a slight increase in EBIT before special items, mainly as a result of lower fixed costs.

EBIT for the third quarter of 2020 included special impairment charges resulting from the sharp decline in production due to the effects of the coronavirus pandemic as well as the expected slow recovery in the automotive and aviation industries.

Compared with the second quarter of 2020, sales and EBIT before special items were considerably higher in both divisions in the Surface Technologies segment.