Polyurethanes
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4th quarter 2017 |
4th quarter 2018 |
Change |
2017 |
2018 |
Change |
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€ million |
€ million |
% |
€ million |
€ million |
% |
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Core volume growth2 |
+5.3% |
+2.3% |
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+3.1% |
+0.8% |
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Sales |
1,876 |
1,597 |
–14.9 |
7,386 |
7,362 |
–0.3 |
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Change in sales |
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Volume |
+6.9% |
+2.5% |
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+3.5% |
+0.9% |
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Price |
+26.2% |
–17.6% |
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+28.2% |
+1.9% |
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Currency |
–5.8% |
+0.2% |
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–1.8% |
–3.1% |
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Portfolio |
0.0% |
0.0% |
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0.0% |
0.0% |
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Sales by region |
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EMLA |
787 |
678 |
–13.9 |
3,147 |
3,182 |
+1.1 |
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NAFTA |
442 |
474 |
+7.2 |
1,868 |
1,947 |
+4.2 |
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APAC |
647 |
445 |
–31.2 |
2,371 |
2,233 |
–5.8 |
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EBITDA |
612 |
111 |
–81.9 |
2,179 |
1,763 |
–19.1 |
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EBIT |
529 |
27 |
–94.9 |
1,826 |
1,412 |
–22.7 |
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Operating cash flows |
595 |
393 |
–33.9 |
1,352 |
1,386 |
+2.5 |
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Cash outflows for additions to property, plant, equipment and intangible assets |
126 |
171 |
+35.7 |
276 |
414 |
+50.0 |
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Free operating cash flow |
469 |
222 |
–52.7 |
1,076 |
972 |
–9.7 |
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In 2018 as a whole, core volumes in Polyurethanes rose by 0.8% over the prior-year period.
At €7,362 million, the Polyurethanes segment’s sales remained stable year-on-year (previous year: €7,386 million). The increases in total volumes sold of 0.9% and average selling prices of 1.9% largely balanced out exchange rate movements, which reduced sales by 3.1%.
In the EMLA region, sales rose by 1.1% to €3,182 million (previous year: €3,147 million). Slightly higher selling price levels and stable total volumes more than offset mildly negative exchange rate changes. The NAFTA region’s sales grew 4.2% to €1,947 million (previous year: €1,868 million). A significant increase in average selling prices more than compensated for strongly negative currency effects. Total volumes sold in the region remained stable. Sales in the APAC region declined 5.8% to €2,233 million (previous year: €2,371 million). This was due to a modest decrease in selling price levels and a slightly negative trend in exchange rates. In contrast, total volumes sold increased somewhat.
Polyurethanes
Quarterly Sales1
€ million
Polyurethanes
Quarterly EBITDA1
€ million
1 All prior-year figures have been adjusted to reflect the transfer of the specialty elastomers business from the Polyurethanes segment to the Coatings, Adhesives, Specialties segment as of January 1, 2018.
EBITDA was down 19.1% from the prior-year period, dropping to €1,763 million (previous year: €2,179 million). Although greater total volumes and higher average selling prices in 2018 improved earnings, these increases could not offset the negative effects of increasingly intense competition and consequently lower margins, particularly in the fourth quarter of 2018. In addition, the 2017 earnings reflected significant one-time revenue streams.
EBIT dropped to €1,412 million (previous year: €1,826 million).
Free operating cash flow amounted to €972 million, down 9.7% from the prior-year figure of €1,076 million. The lower EBITDA and higher cash outflows for additions to property, plant and equipment stood in contrast to the greater availability of working capital, particularly in trade accounts receivable.