Materials

Q2 2020

In the Materials segment, sales in both divisions were considerably below the second quarter of 2019.

Sales development was primarily driven by significantly lower volumes in both divisions due to the effects of the corona pandemic, especially in the Performance Materials division. The decrease in sales volumes here was largely attributable to much weaker demand from the automotive industry. Volumes also declined in the consumer goods and construction industries. In the Monomers division, volumes declined for isocyanates in particular.

Significantly lower price levels for isocyanates and polyamides in the Monomers division also contributed to the sales decrease. Prices were slightly lower in the Performance Materials division.

Sales in both divisions were positively impacted by portfolio effects from the acquisition of Solvay’s integrated polyamide business.

Currency effects had a negative impact on sales.

Compared with the prior-year quarter, income from operations (EBIT) before special items declined considerably in both divisions, especially in the Monomers division. This was primarily due to lower isocyanate margins on the back of weak demand. EBIT before special items in the Performance Materials division also declined considerably, mainly as a result of lower volumes.