Polycarbonates

Second Quarter of 2021

In the second quarter of 2021, core volumes sold in the Polycarbonates segment rose by 15.4% over the prior-year quarter, which had been adversely affected by the coronavirus pandemic. This change was mainly due to growth in core volumes sold in the automotive and transportation industry observed across all regions. At the same time, the unplanned weather-related production stoppages in the NA region in the first quarter of 2021 resulted in limited product availability and therefore reduced our growth potential.

The Polycarbonates segment’s sales were up by 56.6% to €1,015 million in the second quarter of 2021 (previous year: €648 million). Sales saw positive effects of 33.3% from higher selling prices due to a favorable competitive situation and 28.1% from growth in total volumes sold. Exchange rate changes reduced sales by 4.8%, however.

In the EMLA region, sales were up by 57.4% to €310 million (previous year: €197 million). A positive trend in total volumes sold had a strong positive impact on sales. In addition, a rise in the selling price level increased sales significantly, while exchange rate changes were neutral overall with respect to sales. In the NA region, sales climbed by 37.2% to €166 million (previous year: €121 million). This development was driven by a massive increase in total volumes sold. At the same time, exchange rate movements had a considerable negative effect on sales, whereas the decline in average selling prices only reduced sales slightly. In the APAC region, sales grew by 63.3% to €539 million (previous year: €330 million). Higher selling price levels caused sales to increase substantially. Moreover, the expansion of total volumes sold had a considerable positive effect on sales. In contrast, exchange rate developments pushed sales down significantly.

In the second quarter of 2021, the Polycarbonates segment’s EBITDA rose to €260 million over the prior-year quarter (previous year: €96 million). Higher selling prices more than offset the rise in raw material prices and led to substantially improved margins, which had a positive effect on EBITDA. Growth in total volumes sold also increased earnings. However, higher provisions for variable compensation had a negative effect on earnings.

EBIT increased more than fivefold, amounting to €208 million (previous year: €41 million).

Free operating cash flow rose to €118 million (previous year: €34 million). The key drivers of this development were the higher EBITDA and lower cash outflows for additions to property, plant and equipment, which stood in contrast to an increase in funds tied up in working capital.

First Half of 2021

In the first half of 2021, the Polycarbonates segment saw core volumes sold grow by 13.5% over the prior-year period, which was adversely affected by the coronavirus pandemic. Core volumes sold were up, particularly in the automotive and transportation industry across all regions and in the electrical, electronics and household appliance industry in the APAC region. The aforementioned production stoppages in the first quarter of 2021 resulted in limited product availability and impeded our growth opportunities.

In the Polycarbonates segment, sales climbed by 37.9% in the first half of 2021 to €1,904 million (previous year: €1,381 million). Higher selling prices increased sales by 22.9% due to an advantageous competitive situation. Growth in total volumes sold also had a positive impact on sales totaling 19.9%. In contrast, exchange rate developments reduced sales by 4.9%.

EBITDA in the Polycarbonates segment in the first half of 2021 more than doubled over the prior-year period, growing to €482 million (previous year: €205 million). The main factor driving this development was the rise in margins, with higher selling prices more than offsetting the countereffect of higher raw material prices. At the same time, an increase in total volumes sold gave earnings a boost. However, higher provisions for variable compensation had a negative effect on earnings.

EBIT advanced to €376 million (previous year: €95 million).

Free operating cash flow grew to €207 million (previous year: €40 million). This was due to the increase in EBITDA and lower cash outflows for additions to property, plant and equipment. An increase in funds tied up in working capital had a negative effect.