Industrial Solutions

Q2 2022

Sales in the Industrial Solutions segment rose considerably compared with the second quarter of 2021. This was mainly driven by strong sales growth in the Performance Chemicals division. The Dispersions & Resins division recorded a slight sales increase.

The sales increase was primarily due to significantly higher price levels across all business areas and in all regions. This was largely the result of higher prices for raw materials, energy and freight.

Sales growth was supported by positive currency effects, mainly relating to the U.S. dollar and the Chinese renminbi.

Sales were considerably reduced by portfolio effects, especially in the Dispersions & Resins division following the disposal of the global pigments business as of June 30, 2021.

In addition, slightly lower sales volumes dampened sales development in both divisions. This was mainly due to the lockdowns in China and disruptions to global supply chains.

The segment’s income from operations (EBIT) before special items was slightly above the prior-year quarter. This reflected the significant rise in earnings in the Performance Chemicals division, primarily from price-driven margin growth. Fixed costs were much higher, mainly as a result of currency effects and scheduled turnarounds, and dampened earnings development in the division. By contrast, EBIT before special items declined slightly in the Dispersions & Resins division. The decrease in earnings was primarily due to the sale of the global pigments business. This could only be partially offset by margin growth on the back of higher prices.