Surface Technologies
Q2 2022
In the Surface Technologies segment, sales were considerably below the prior-year quarter. Considerable sales growth in the Coatings division was unable to offset the strong decline in the Catalysts division.
|
Surface Technologies |
Catalysts |
Coatings |
|---|---|---|---|
Volumes |
–14.2% |
–16.8% |
1.3% |
Prices |
–5.7% |
–8.9% |
13.1% |
Portfolio |
5.3% |
6.2% |
–0.6% |
Currencies |
7.1% |
7.1% |
7.6% |
Sales |
–7.6% |
–12.4% |
21.4% |
The year-on-year sales decrease was primarily due to significantly lower volumes in the Catalysts division. This was mainly the result of weaker demand from the automotive industry due to insufficient semiconductor supply and the lockdowns in China. Volumes declined significantly in the mobile emissions catalysts business and in precious metal trading.1 Higher sales volumes in all of the division’s other business areas were unable to compensate for this. Sales volumes rose slightly in the Coatings division. Volume growth in the automotive refinish coatings and automotive OEM coatings businesses more than compensated for lower volumes in the surface treatment business.
The Catalysts division’s sales were also reduced by significantly lower precious metal prices. Accordingly, at €3,269 million, sales in precious metal trading and precious metal sales in the mobile emissions catalysts business1 were well below the prior-year quarter (€4,284 million). By contrast, the Coatings division raised prices significantly in all business areas.
Currency effects, mainly relating to the U.S. dollar, cushioned the sales decrease.
Portfolio effects in the Catalysts division following the acquisition of a majority shareholding in BASF Shanshan Battery Materials also had a positive impact on sales.
Income from operations (EBIT) before special items declined considerably compared with the second quarter of 2021. This was attributable to the considerable decline in the Coatings division’s EBIT before special items, mainly due to higher fixed costs. One reason for this was a one-off effect that had reduced fixed costs in the prior-year quarter. The Catalysts division posted a slight increase in EBIT before special items thanks to a clearly positive contribution from the battery materials business. The division’s earnings were weighed down by significantly lower volumes in the mobile emissions catalysts business and lower prices in precious metal trading.
|
Q2 |
H1 |
||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
2022 |
2021 |
+/– |
2022 |
2021 |
+/– |
||||||||||||
Sales to third parties |
5,446 |
5,892 |
–7.6% |
10,903 |
11,839 |
–7.9% |
||||||||||||
of which Catalysts |
4,422 |
5,049 |
–12.4% |
8,936 |
10,159 |
–12.0% |
||||||||||||
Coatings |
1,023 |
843 |
21.4% |
1,967 |
1,680 |
17.1% |
||||||||||||
Income from operations before depreciation, amortization and special items |
365 |
399 |
–8.6% |
766 |
869 |
–11.9% |
||||||||||||
Income from operations before depreciation and amortization (EBITDA) |
300 |
400 |
–25.0% |
694 |
866 |
–19.8% |
||||||||||||
Depreciation and amortizationa |
219 |
111 |
97.1% |
353 |
221 |
59.9% |
||||||||||||
Income from operations (EBIT) |
81 |
289 |
–71.9% |
341 |
645 |
–47.1% |
||||||||||||
Special items |
–146 |
− |
− |
–152 |
–4 |
. |
||||||||||||
EBIT before special items |
227 |
289 |
–21.5% |
493 |
649 |
–24.0% |
||||||||||||
Assets (June 30)a |
15,754 |
13,190 |
19.4% |
15,754 |
13,190 |
19.4% |
||||||||||||
Investments including acquisitionsb |
135 |
125 |
7.8% |
244 |
198 |
23.3% |
||||||||||||
Research and development expenses |
86 |
68 |
26.6% |
181 |
135 |
33.9% |
||||||||||||
|
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1 Sales, volumes, EBITDA before special items and the EBITDA margin before special items excluding precious metals for the BASF Group and for the Surface Technologies segment are presented under Selected Key Figures Excluding Precious Metals.