environment already experienced in the previous year, caused
in particular by weak demand in the automotive industry
and the exploration sector, the measures implemented to contain
the pandemic in the second quarter led to a sales decline
across all areas. Starting in the middle of the year, sales
especially of paint and coating additives recovered, partly
due to strong demand in the DIY sector. At the end of the
year, overall product sales developed disproportionately
compared to the same period of the previous year. This was
primarily the case with additives sales, which for the year
as a whole were only 3 % lower than the previous year’s level
in operational terms. The division’s measuring and testing
instruments business suffered from continued weak demand
in the automotive industry, recording a 14 % decline in
nominal sales.
The operating sales decreases across the entire division
showed regional differences. Although sales in Asia were
down slightly in operating terms, they were positively impacted
by a significant increase in operating sales in China,
BYK’s second largest single market. Other countries in Asia,
including India, reported double-digit operating sales declines.
Operating sales in the Americas – mainly influenced
by the U.S., BYK’s largest single market – also fell vis-à-vis
the previous year. While the negative development of the
prior year continued in the United States, exacerbated by
the pandemic, Brazil, Mexico, and Canada were able to increase
operating sales compared to the previous year. The
Europe region, particularly the Eurozone, also reported a sales
decrease. The significant decline, particularly in Italy, France,
and Germany, could not be offset by the operating growth
in individual Eastern European markets.
Sales Performance of ECKART
In 2020, the ECKART division achieved sales of € 315.2 million
(previous year: € 356.2 million). The 11 % decline in
year-to-year terms was negatively impacted by exchange-rate
effects and positively influenced to a small degree by the
acquisition of UK-based Aluminium Materials Technologies
Ltd. in the middle of the year. Adjusted for these effects,
operating sales decreased by 11 %. Sales were negatively
impacted above all by the pandemic-related decline in demand
in the automotive and cosmetics industries, as well as
other sectors. The discontinuation of a trading business
in China in mid-2019 also had a diminishing effect on the
year-on-year growth rate.
The difficult market environment was reflected in all
regions in 2020, albeit to varying degrees. While Asia recorded
only a slight decline in operating sales development,
sales in the Americas region were significantly lower than
in 2019. The pandemic also had a negative effect on sales in
Europe, especially in the Eurozone. The positive development
of some Eastern European countries was unable to
compensate for this.
Sales Performance of ELANTAS
In the ELANTAS division, sales fell by 6 % or € 31.2 million to
€ 463.3 million in 2020 (previous year: € 494.5 million).
Adjusted for negative currency effects and positive acquisition
effects, the operating sales decline amounted to 5 %.
The main driver was the global impact of the pandemic on
demand, which was reflected in all of ELANTAS’ major
business areas in 2020.
The regional impact of the pandemic on sales development
was mixed. In Asia, particularly China, the division’s
largest sales market, almost compensated for the initial sales
slump by the end of the year. But India and other countries
in Asia were unable to do so and closed the year with
significant sales losses. The Americas, with the U.S. as the
largest individual market, also recorded a sales drop, with
negative exchange-rate effects exacerbating the situation.
In this region, Brazil developed positively, reporting sales well
above the previous year’s level. In Europe, too, sales declined
as a result of the pandemic, due in particular to weak
demand in Germany, France, and Italy.
56 Business Development