Industrial Solutions

Q3 2022

In the Industrial Solutions segment, sales rose considerably compared with the third quarter of 2021. Both operating divisions contributed to the increase.

Factors influencing sales in Q3 2022 – Industrial Solutions

 

Industrial Solutions

Dispersions & Resins

Performance Chemicals

Volumes

–4.4%

–8.0%

2.0%

Prices

17.4%

14.9%

21.7%

Portfolio

–0.1%

–0.1%

–0.2%

Currencies

8.9%

8.0%

10.5%

Sales

21.8%

14.8%

34.0%

Sales growth was mainly attributable to significantly higher prices in all businesses and regions, primarily resulting from higher raw materials and energy prices and logistics costs.

Sales were boosted by positive currency effects, especially from the U.S. dollar.

Lower volumes overall had a slightly negative impact on sales performance. The Dispersions & Resins division recorded a significant decline in volumes, particularly in the dispersions, resins and additives businesses. Slightly higher volumes in the Performance Chemicals division, especially in the fuel and lubricant solutions business, only partially compensated for this.

The segment’s income from operations (EBIT) before special items was considerably above the prior-year quarter. The increase was mainly attributable to significantly higher earnings in the Performance Chemicals division, primarily from price-driven margin growth. This was partially offset by higher fixed costs, mainly due to higher production costs resulting from plant shutdowns and the increase in energy prices. EBIT before special items rose slightly in the Dispersions & Resins division. The increase was primarily due to price-driven margin growth.

In the third quarter of 2022, EBIT included special income from the divestiture of the kaolin minerals business, which was closed on September 30, 2022.

Segment data – Industrial Solutions (Million €)

 

Q3

January–September

 

2022

2021

+/–

2022

2021

+/–

Sales to third parties

2,687

2,205

21.8%

7,823

6,672

17.3%

of which Dispersions & Resins

1,606

1,399

14.8%

4,744

4,322

9.8%

Performance Chemicals

1,080

806

34.0%

3,079

2,350

31.0%

Income from operations before depreciation, amortization and special items

389

347

12.1%

1,229

1,085

13.3%

Income from operations before depreciation and amortization (EBITDA)

398

315

26.3%

1,220

1,082

12.7%

Depreciation and amortizationa

89

86

3.4%

258

254

1.7%

Income from operations (EBIT)

309

229

34.9%

962

828

16.1%

Special items

10

–33

.

–9

–7

–26.8%

EBIT before special items

299

262

14.2%

971

835

16.2%

Assets (September 30)

7,063

6,010

17.5%

7,063

6,010

17.5%

Investments including acquisitionsb

74

83

–11.3%

192

215

–10.5%

Research and development expenses

42

39

8.4%

129

129

–0.1%

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