Surface Technologies

Q2 2020

In the Surface Technologies segment, sales declined slightly due to a considerable sales decrease in the Coatings division. By contrast, we considerably increased sales in the Catalysts division.

Factors influencing sales in Q2 2020 – Surface Technologies

 

Surface Technologies

Catalysts

Coatings

Volumes

(26%)

(19%)

(39%)

Prices

24%

33%

1%

Portfolio

0%

0%

0%

Currencies

0%

1%

(3%)

Sales

(2%)

15%

(41%)

The sales development was primarily driven by significantly lower sales volumes in both divisions. This was due to weak demand from the automotive industry due to the effects of the corona pandemic. Lower volumes, especially for mobile emissions catalysts, in precious metal trading and for refining catalysts, reduced sales in the Catalysts division. In the Coatings division, volumes declined in all business areas.

Significantly higher prices overall as a result of higher precious metal prices in the Catalysts division had an offsetting effect. In precious metal trading, sales rose to €1,502 million due to higher prices (Q2 2019: €1,065 million). Prices rose slightly in the Coatings division, mainly in the decorative paints and surface treatments businesses.

Income from operations (EBIT) before special items was considerably below the level of the prior-year quarter in both divisions. This was largely driven by the development of sales volumes in both divisions.

Segment data – Surface Technologies (Million €)

 

Q2

H1

 

2020

2019

+/–

2020

2019

+/–

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

Sales to third parties

3,099

3,161

(2%)

7,427

6,183

20%

of which Catalysts

2,549

2,222

15%

6,081

4,340

40%

Coatings

550

939

(41%)

1,346

1,843

(27%)

Income from operations before depreciation, amortization and special items

(34)

240

.

304

495

(39%)

Income from operations before depreciation and amortization (EBITDA)

(44)

235

.

290

487

(40%)

Depreciation and amortizationa

132

110

20%

249

218

14%

Income from operations (EBIT)

(176)

125

.

41

269

(85%)

Special items

(25)

(4)

.

(28)

(11)

.

EBIT before special items

(151)

129

.

69

280

(75%)

Assets (June 30)

11,700

11,378

3%

11,700

11,378

3%

Investments including acquisitionsb

137

131

5%

220

228

(4%)

Research and development expenses

48

52

(8%)

103

102

1%