Surface Technologies
Q3 2022
In the Surface Technologies segment, sales were 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 |
–8.7% |
–12.3% |
12.2% |
Prices |
–8.8% |
–12.7% |
13.5% |
Portfolio |
3.7% |
4.5% |
–0.8% |
Currencies |
8.5% |
8.4% |
8.7% |
Sales |
–5.3% |
–12.1% |
33.7% |
The segment’s sales decrease was mainly due to significantly lower precious metal prices in the Catalysts division. Sales in precious metal trading and precious metal sales in the automotive catalysts business1 were €3,006 million, considerably below the prior-year quarter (€3,986 million). Significant price increases across all business areas in the Coatings division, particularly in Europe and in the region South America, Africa, Middle East, were unable to compensate for this.
Sales were also reduced by significantly lower volumes in the Catalysts division. This was mainly attributable to lower volumes in precious metal trading. Volume growth in the mobile emissions catalysts and refinery catalysts businesses was unable to compensate for this. The Coatings division posted significantly higher sales volumes in the automotive OEM coatings business in particular, especially in Asia Pacific and North America. This resulted mainly from the government stimulus program in China and improved supply chain conditions in North America.
Sales were positively impacted by currency effects, primarily from the U.S. dollar.
Portfolio effects in the Catalysts division following the acquisition of a majority shareholding in BASF Shanshan Battery Materials on August 31, 2021, also had a positive impact on sales development.
Both divisions considerably increased income from operations (EBIT) before special items compared with the prior-year period. Earnings growth in the Catalysts division was mainly driven by improved contributions from the mobile emissions catalysts and battery materials businesses. This more than compensated for a lower contribution from precious metal trading. In the Coatings division, the increase in EBIT before special items largely resulted from higher margins on the back of volume growth. The division’s earnings growth was curbed by higher fixed costs due to increased energy prices, among other factors.
EBIT for the third quarter of 2022 included special charges from the integration of the acquired BASF Shanshan companies and in connection with the establishment of the BASF Automotive Catalysts & Recycling unit within the Catalysts division.
1 Sales, volume growth, 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 in this quarterly statement.
|
Q3 |
January–September |
||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
2022 |
2021 |
+/– |
2022 |
2021 |
+/– |
||||||||||||
Sales to third parties |
5,333 |
5,631 |
–5.3% |
16,236 |
17,470 |
–7.1% |
||||||||||||
of which Catalysts |
4,213 |
4,793 |
–12.1% |
13,149 |
14,952 |
–12.1% |
||||||||||||
Coatings |
1,120 |
838 |
33.7% |
3,087 |
2,518 |
22.6% |
||||||||||||
Income from operations before depreciation, amortization and special items |
380 |
245 |
54.9% |
1,145 |
1,114 |
2.8% |
||||||||||||
Income from operations before depreciation and amortization (EBITDA) |
337 |
229 |
47.2% |
1,032 |
1,095 |
–5.8% |
||||||||||||
Depreciation and amortizationa |
141 |
125 |
12.4% |
494 |
346 |
42.8% |
||||||||||||
Income from operations (EBIT) |
197 |
104 |
88.9% |
538 |
749 |
–28.2% |
||||||||||||
Special items |
–43 |
–15 |
–184.6% |
–195 |
–19 |
–925.9% |
||||||||||||
EBIT before special items |
239 |
119 |
101.0% |
733 |
768 |
–4.6% |
||||||||||||
Assets (September 30) |
16,132 |
13,788 |
17.0% |
16,132 |
13,788 |
17.0% |
||||||||||||
Investments including acquisitionsb |
191 |
960 |
–80.1% |
436 |
1,158 |
–62.4% |
||||||||||||
Research and development expenses |
74 |
69 |
7.5% |
255 |
204 |
25.0% |
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|
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