Industrial Solutions

Q3 2021

Sales in the Industrial Solutions segment were considerably above the level of the third quarter of 2020. Both the Dispersions & Resins division as well as the Performance Chemicals division contributed to this growth.

Factors influencing sales in Q3 2021 – Industrial Solutions

 

Industrial Solutions

Dispersions & Resins

Performance Chemicals

Volumes

11%

10%

14%

Prices

18%

22%

11%

Portfolio

–10%

–16%

0%

Currencies

1%

1%

0%

Sales

20%

17%

25%

Sales growth was driven by higher price levels in both divisions resulting largely from increased prices for raw materials. Particularly Dispersions & Resins raised prices significantly.

Higher volumes in almost all business areas of both divisions supported sales performance. In the prior-year quarter, the segment’s sales volume development had been negatively impacted by the effects of the coronavirus pandemic.

Currency effects, especially in Asia Pacific, had a slightly positive impact on sales.

Negative portfolio effects in Dispersions & Resins associated with the divestiture of the global pigments business had an offsetting impact.

The segment’s income from operations (EBIT) before special items grew considerably, mainly a result of the significant earnings increase in Dispersions & Resins. The division’s higher EBIT before special items was primarily due to higher volumes. The Performance Chemicals division slightly increased EBIT before special items, largely because of the positive volume development.

The decline in special items in the third quarter of 2021 was due primarily to the special charges for impairments in the prior-year quarter.

Segment data – Industrial Solutions (Million €)

 

Q3

January–September

 

2021

2020

+/–

2021

2020

+/–

Sales to third parties

2,205

1,844

20%

6,672

5,761

16%

of which Dispersions & Resins

1,399

1,200

17%

4,322

3,674

18%

Performance Chemicals

806

644

25%

2,350

2,087

13%

Income from operations before depreciation, amortization and special items

347

274

27%

1,085

897

21%

Income from operations before depreciation and amortization (EBITDA)

315

264

19%

1,082

824

31%

Depreciation and amortizationa

86

186

–54%

254

373

–32%

Income from operations (EBIT)

229

78

194%

828

451

84%

Special items

–33

–108

69%

–7

–171

96%

EBIT before special items

262

186

41%

835

622

34%

Assets (September 30)

6,010

6,556

–8%

6,010

6,556

–8%

Investments including acquisitionsb

83

81

2%

215

216

0%

Research and development expenses

39

45

–13%

129

133

–3%

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