Group Management Report Products Safety and Health Environment Human Resources Social Commitment Consolidated Financial Statements 53
a slightly negative share in earnings. Furthermore, in May
2020, ALTANA acquired the British company Aluminium
Materials Technologies Ltd. The firm, which develops and
sells special alloys for 3D printing, was integrated into
the ECKART division, in which it contributed a minor share to
sales performance in 2020.
In 2020, the development of the exchange rates between
the euro, the Group currency, and other currencies
important for ALTANA, had a negative influence on the
sales and earnings development. The exchange rate of the
euro to the Brazilian real had the biggest effect in 2020.
At an average of 5.89 real for one euro, it was higher than
in the previous year (4.41 real for one euro). Further significant
effects from changed exchange-rate relations resulted
from the rate of the U.S. dollar to the euro, which at
1.14 U.S. dollars for one euro was also higher than in the
previous year (1.12 U.S. dollars for one euro). The average
exchange rate of the euro against the Chinese renminbi also
increased, from 7.74 renminbi to 7.87 renminbi for one
euro. The effects of the translation of the financial statements
of the major non-euro Group companies on items of the
2020 income statement were negative overall. Differences
in exchange rates on the balance sheet date also had a
significantly negative influence on balance sheet items compared
to the previous year.
Business Performance
Group Sales Performance
Group sales totaled € 2,178.2 million in 2020, a decrease
of 3 % or € 70.8 million compared to the previous year
(€ 2,248.9 million). Non-operating effects generally had a
positive effect on the sales development. Exchange-rate
changes, primarily from the changed relations of the euro to
the Brazilian real and the U.S. dollar, resulted in a sales
decrease of about 2 %. Acquisitions, on the other hand, in-
In the U.S., overall chemical production fell by 3.6 %, with
production in the medical, hygiene products, and DIY sectors
outperforming other areas of the industry. The crisis hit
Latin America harder, leading to a 7.2 % decline in production
volumes. At an expected - 5.8 %, the decrease in Brazil was
less pronounced than in Latin America as a whole.
The chemical sector in the Asia-Pacific region recorded
the smallest decline in the 2020 fiscal year, at - 2.1 %. In
keeping with the overall economic development, China, the
largest producer with 0.3 % growth, was largely respon-
sible for this development. The crisis had a stronger impact
in India, however, with production down by 6.1 %. Other
Asian countries, such as Korea (- 5.9 %) and Japan (- 9.7 %),
also experienced a sharp decline due to the pandemic.
On account of government measures to contain the pandemic,
the associated closure of many production companies,
and the subsequent slowdown in demand, the price of
a barrel of Brent crude oil fell from an initial 67 U.S. dollars
to a historic low of 18 U.S. dollars from January to April 2020.
The restart of production and rising demand caused the
price to rise steadily again over the course of the summer, stabilizing
at a level of 50 U.S. dollars at the end of the year.
The average price for the year was 42 U.S. dollars, well below
the previous year’s level (64 U.S. dollars).
Important Events for Business Development
In 2020, non-operating effects at ALTANA influenced the
company’s earnings and financial position as well as its assets.
In January 2020, ALTANA acquired the business with
innovative additives for exploration of the U.S. company Gulf
Scientific Inc. as part of an asset deal. The activities were
integrated into the BYK division and had a slightly positive
impact on sales development. The Swiss company Schmid
Rhyner AG, acquired in February 2020, with activities in the
field of overprint varnishes for the packaging and printing
industries, was taken over by the ACTEGA division. Schmid
Rhyner AG made a positive contribution to sales and had