Business Development by Segment
Polycarbonates
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4th quarter 20181 |
4th quarter 2019 |
Change |
20181 |
2019 |
Change |
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€ million |
€ million |
% |
€ million |
€ million |
% |
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Core volume growth2 |
+1.6% |
+3.5% |
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+3.0% |
+2.7% |
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Sales |
924 |
814 |
–11.9 |
4,051 |
3,473 |
–14.3 |
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Change in sales |
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Volume |
+4.2% |
0.0% |
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+3.8% |
+2.4% |
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Price |
–2.3% |
–13.5% |
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+9.7% |
–16.5% |
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Currency |
+0.3% |
+1.6% |
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–3.4% |
+2.0% |
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Portfolio |
–3.8% |
0.0% |
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–1.7% |
–2.2% |
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Sales by region |
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EMLA |
301 |
270 |
–10.3 |
1,347 |
1,146 |
–14.9 |
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NAFTA |
200 |
160 |
–20.0 |
817 |
734 |
–10.2 |
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APAC |
423 |
384 |
–9.2 |
1,887 |
1,593 |
–15.6 |
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EBITDA |
133 |
95 |
–28.6 |
1,036 |
536 |
–48.3 |
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EBIT |
88 |
39 |
–55.7 |
861 |
300 |
–65.2 |
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Operating cash flows |
235 |
204 |
–13.2 |
654 |
613 |
–6.3 |
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Cash outflows for additions to property, plant, equipment and intangible assets |
70 |
84 |
+20.0 |
186 |
209 |
+12.4 |
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Free operating cash flow |
165 |
120 |
–27.3 |
468 |
404 |
–13.7 |
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In 2019 as a whole, core volumes in Polycarbonates rose by 2.7% over the prior-year period. The electrical, electronics and household appliances industries and the construction industry were the main contributors to this growth.
The Polycarbonates segment’s sales declined by 14.3% to €3,473 million in 2019 (previous year: €4,051 million). The key driver here was the year-over-year decrease in selling price levels, which reduced sales by 16.5%. In contrast, the expansion of total volumes and exchange rate movements had a positive effect on sales of 2.4% and 2.0%, respectively. Moreover, the portfolio effect from the sale of the U.S. sheets business in the third quarter of 2018 also impacted sales in fiscal 2019 with a negative effect of 2.2%.
In the EMLA region, sales were down by 14.9% to €1,146 million (previous year: €1,347 million). Significantly lower selling prices and slight decline in total volumes sold adversely affected sales, while changes in exchange rates overall did not have any notable impact. Sales in the NAFTA region declined by 10.2% to €734 million (previous year: €817 million), driven by a significant drop in average selling prices and the aforementioned portfolio effect, which had a strongly negative effect on sales. This stood in contrast to the slightly positive effects from the increase in total volumes sold and exchange rate movements. In the APAC region, sales decreased by 15.6% to €1,593 million (previous year: €1,887 million). Lower selling prices had a considerable negative effect on sales, whereas total volumes sold had a significantly positive effect. Exchange rate changes improved sales slightly.
Polycarbonates quarterly sales
€ million
Polycarbonates quarterly EBITDA
€ million
1 Reference information was not restated, see note 2.1 “Financial reporting standards applied for the first time in the reporting period.”
In 2019, EBITDA in the Polycarbonates segment decreased by 48.3% compared with the prior-year period, dropping to €536 million (previous year: €1,036 million), mostly on account of the negative change in selling prices. Moreover, the portfolio effect from the sale of the U.S. sheets business also reduced earnings. Conversely, lower raw material prices and higher volumes sold had a positive effect on EBITDA.
EBIT decreased by 65.2% to €300 million (previous year: €861 million). Writedowns of assets totaling €26 million in connection with the disposal of the U.S. sheets business negatively affected EBIT. Of this amount, €21 million related to impairment losses on noncurrent assets.
Free operating cash flow decreased by 13.7% year over year to €404 million (previous year: €468 million), mostly as a result of the lower EBITDA. Greater cash outflows for additions to property, plant and equipment also had a negative effect, whereas increased working capital freed up had a positive effect.