Performance Materials
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2nd quarter |
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2nd quarter |
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Change |
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1st half |
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1st half |
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Change |
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€ million |
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€ million |
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% |
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€ million |
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€ million |
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% |
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Sales (external) |
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1,957 |
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2,461 |
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25.8 |
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3,697 |
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4,849 |
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31.2 |
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Intersegment sales |
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468 |
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524 |
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12.0 |
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951 |
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1,181 |
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24.2 |
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Sales (total) |
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2,425 |
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2,985 |
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23.1 |
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4,648 |
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6,030 |
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29.7 |
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Change in sales (external) |
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Volume |
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19.5% |
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1.6% |
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7.1% |
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3.5% |
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Price |
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71.2% |
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17.5% |
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49.5% |
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21.7% |
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Currency |
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–5.2% |
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6.7% |
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–5.0% |
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6.0% |
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Portfolio |
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0.0% |
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0.0% |
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0.0% |
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0.0% |
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Sales by region (external) |
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EMLA |
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955 |
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1,255 |
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31.4 |
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1,845 |
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2,397 |
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29.9 |
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NA |
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445 |
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625 |
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40.4 |
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779 |
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1,229 |
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57.8 |
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APAC |
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557 |
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581 |
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4.3 |
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1,073 |
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1,223 |
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14.0 |
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EBITDA2 |
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644 |
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367 |
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–43.0 |
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1,274 |
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987 |
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–22.5 |
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EBIT2 |
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502 |
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204 |
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–59.4 |
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991 |
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679 |
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–31.5 |
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Cash flows from operating activities |
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498 |
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95 |
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–80.9 |
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835 |
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301 |
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–64.0 |
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Cash outflows for additions to property, plant, equipment and intangible assets |
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125 |
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132 |
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5.6 |
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203 |
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226 |
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11.3 |
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Free operating cash flow |
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373 |
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(37) |
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. |
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632 |
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75 |
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–88.1 |
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Second Quarter of 2022
The Performance Materials segment’s sales increased compared with the prior-year quarter, rising 25.8% to €2,461 million (previous year: €1,957 million). This was mainly driven by a higher selling price level, which helped raise sales by 17.5%. At the same time, exchange rate movements and an increase in total volumes sold each had a positive impact, increasing sales by 6.7% and 1.6% respectively. The logistical bottlenecks in China in the second quarter of 2022 limited the segment’s further growth, particularly in the APAC region.
In the EMLA region, sales were up 31.4% to €1,255 million (previous year: €955 million). Higher average selling prices increased sales substantially. At the same time, an increase in total volumes sold as well as exchange rate movements each had a slightly positive impact on sales. In the NA region, sales expanded by 40.4% to €625 million (previous year: €445 million), driven primarily by a higher selling price level, which led to a sharp increase in sales. Exchange rate movements drove sales up significantly and the increase in volumes sold led sales slightly higher. Sales in the APAC region were up 4.3% to €581 million (previous year: €557 million). Exchange rate movements contributed considerably to higher sales, while an increase in average selling prices had a slightly positive effect on sales. However, the change in volumes sold reduced sales significantly.
In the second quarter of 2022, the Performance Materials segment’s EBITDA was down 43.0% on the prior-year quarter, declining to €367 million (previous year: €644 million). This was attributable in particular to lower margins, as higher selling prices were outweighed by the rise in raw material and energy prices. In contrast, earnings were boosted by lower provisions for short-term variable compensation and exchange rate movements. The trend in volumes sold had no notable effect on earnings.
EBIT declined 59.4% to €204 million (previous year: €502 million).
Free operating cash flow declined to €–37 million (previous year: €373 million). This is predominantly due to the decline in EBITDA and an increase in funds tied up in working capital.
Performance Materials
Quarterly Sales
€ million
Performance Materials
Quarterly EBITDA
€ million
First Half of 2022
Segment sales in the first half of 2022 rose by 31.2% to €4,849 million (previous year: €3,697 million), mainly driven by a rise in average selling prices, which helped raise sales by 21.7%. Exchange rate movements and an increase in volumes sold each had a positive impact, increasing sales by 6.0% and 3.5% respectively.
EBITDA was down 22.5% to €987 million in the first half of 2022 (previous year: €1,274 million). This was mainly attributable to a decline in margins, with higher selling prices partially offsetting increased raw material and energy prices. In contrast, lower provisions for short-term variable compensation, exchange rate movements, and an increase in volumes sold had a positive effect on earnings.
EBIT declined 31.5% to €679 million (previous year: €991 million).
Free operating cash flow decreased 88.1% to €75 million (previous year: €632 million), driven mainly by lower EBITDA and higher funds tied up in working capital.