Polycarbonates
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2nd quarter 20181 |
2nd quarter 2019 |
Change |
1st half 20181 |
1st half 2019 |
Change |
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€ million |
€ million |
% |
€ million |
€ million |
% |
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Core volume growth2 |
+5.3% |
+4.4% |
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+4.0% |
–1.0% |
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Sales |
1,056 |
898 |
–15.0 |
2,089 |
1,758 |
–15.8 |
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Change in sales |
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Volume |
+5.6% |
+5.7% |
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+2.8% |
+1.5% |
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Price |
+15.2% |
–18.8% |
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+15.8% |
–15.8% |
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Currency |
–4.9% |
+1.7% |
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–6.6% |
+2.1% |
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Portfolio |
0.0% |
–3.6% |
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0.0% |
–3.6% |
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Sales by region |
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EMLA |
353 |
306 |
–13.3 |
715 |
595 |
–16.8 |
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NAFTA |
209 |
190 |
–9.1 |
412 |
378 |
–8.3 |
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APAC |
494 |
402 |
–18.6 |
962 |
785 |
–18.4 |
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EBITDA |
285 |
154 |
–46.0 |
588 |
309 |
–47.4 |
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EBIT |
241 |
99 |
–58.9 |
501 |
204 |
–59.3 |
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Operating cash flows |
155 |
93 |
–40.0 |
234 |
231 |
–1.3 |
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Cash outflows for additions to property, plant, equipment and intangible assets |
44 |
42 |
–4.5 |
67 |
81 |
+20.9 |
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Free operating cash flow |
111 |
51 |
–54.1 |
167 |
150 |
–10.2 |
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Second quarter of 2019
In the second quarter of 2019, core volumes in the Polycarbonates segment were 4.4% higher than in the prior-year quarter. Whereas the electrical and electronics industry and the construction sector contributed to this growth, weak demand from the auto industry led to a drop in volumes.
Sales in the Polycarbonates segment tumbled 15.0% to €898 million (previous year: €1,056 million). Lower selling prices had the effect of reducing sales by 18.8% due to increased competition, while the rise in total volumes had a positive effect on sales of 5.7%. Exchange rate fluctuations bumped up sales by 1.7%. Moreover, the portfolio effect from the sale of the U.S. sheet business in the third quarter of 2018 also impacted sales in the second quarter of 2019 with a negative effect of 3.6%.
In the EMLA region, sales were down by 13.3% to €306 million (previous year: €353 million). The decline in total volumes had a slightly negative effect on sales. In addition, lower selling prices pushed sales down considerably. The effect of exchange rate developments remained neutral. The NAFTA region’s sales dropped 9.1% to €190 million (previous year: €209 million) primarily due to the aforementioned significant effect that portfolio changes had on sales. A significant jump in total volumes and substantially positive exchange rate movements resulted in an increase in sales. In contrast, the drop in the selling price level had a major negative effect on sales. The APAC region’s sales fell 18.6% to €402 million (previous year: €494 million). Significant growth in total volumes and slightly positive exchange rate movements could not compensate for a considerable decrease in the selling price level.
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 the second quarter of 2019, EBITDA in the Polycarbonates segment decreased 46.0% compared with the prior-year quarter, dropping to €154 million (previous year: €285 million), mostly on account of the negative change in selling prices. In contrast, larger volumes sold and lower raw material prices positively influenced earnings. The portfolio effect from the sale of the U.S. sheet business additionally had a negative impact on EBITDA.
EBIT tumbled 58.9% to €99 million (previous year: €241 million).
Free operating cash flow decreased 54.1% to €51 million (previous year: €111 million). The key driver here was the decrease in EBITDA, which was partly offset by freeing up working capital in inventories.
First half of 2019
In the first half of 2019, core volumes in the Polycarbonates segment were 1.0% lower than in the prior-year period.
Sales in the Polycarbonates segment were down 15.8% to €1,758 million in the first six months of 2019 (previous year: €2,089 million). The lower selling price level was the primary factor in the reduction in sales by 15.8%. The changes in total volumes and exchange rates, which had a positive effect of 1.5% and 2.1%, respectively, were able to compensate for the negative effect of 3.6% from the sale of the U.S. sheet business in the third quarter of 2018.
In the first half of 2019, EBITDA in the Polycarbonates segment decreased by 47.4% compared with the prior-year period, dropping to €309 million (previous year: €588 million), mostly on account of the negative change in selling prices.
EBIT decreased 59.3% to €204 million (previous year: €501 million).
Free operating cash flow was down by 10.2% to €150 million (previous year: €167 million). Freeing up working capital in inventories and receivables partly offset the lower EBITDA.