Surface Technologies

Q3 2021

Sales in the Surface Technologies segment rose considerably compared with the prior-year quarter. This was due primarily to a significant sales increase in the Catalysts division. Slight sales growth was recorded in the Coatings division.

Factors influencing sales in Q3 2021 – Surface Technologies

 

Surface Technologies

Catalysts

Coatings

Volumes

–3%

–3%

–3%

Prices

37%

45%

3%

Portfolio

1%

2%

0%

Currencies

1%

1%

1%

Sales

36%

45%

1%

The sales performance was primarily attributable to significantly higher precious metal prices in the Catalysts division. This also led to a considerable increase in sales in precious metal trading to €2,569 million (Q3 2020: €1,709 million). Prices could be raised in nearly all business areas of the Coatings division.

Portfolio effects in the Catalysts division following the formation of the BASF Shanshan Battery Materials Co., Ltd. joint venture had a positive impact on sales.

Slightly positive currency effects, especially in Asia Pacific, also contributed to sales.

The segment’s sales volumes decreased primarily as a result of the ongoing shortage of semiconductors in the automotive market. This led to a decrease in volumes in both divisions, mainly in emission catalysts and automotive OEM coatings. Sales volumes in precious metal trading also declined. Improved volumes in the remaining business areas of both divisions only partially compensated for this.

Income from operations (EBIT) before special items decreased considerably compared with the third quarter of 2020. The key factor for this was the significantly lower EBIT before special items in the Coatings division due especially to higher fixed costs and lower margins because of increased raw materials prices.

By contrast, EBIT before special items rose slightly in the Catalysts division due mainly to higher margins. Among other things, these resulted from a favorable product mix.

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 – Surface Technologies (Million €)

 

Q3

January–September

 

2021

2020

+/–

2021

2020

+/–

Sales to third parties

5,631

4,142

36%

17,470

11,569

51%

of which Catalysts

4,793

3,310

45%

14,952

9,391

59%

Coatings

838

832

1%

2,518

2,178

16%

Income from operations before depreciation, amortization and special items

245

322

–24%

1,114

626

78%

Income from operations before depreciation and amortization (EBITDA)

229

308

–26%

1,095

598

83%

Depreciation and amortizationa

125

1,111

–89%

346

1,360

–75%

Income from operations (EBIT)

104

–803

.

749

–762

.

Special items

–15

–1,003

99%

–19

–1,031

98%

EBIT before special items

119

200

–41%

768

269

186%

Assets (September 30)

13,788

11,305

22%

13,788

11,305

22%

Investments including acquisitionsb

960

150

.

1,158

370

213%

Research and development expenses

69

56

23%

204

159

28%

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