Polycarbonates
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2nd quarter 2019 |
2nd quarter 2020 |
Change |
1st half 2019 |
1st half 2020 |
Change |
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€ million |
€ million |
% |
€ million |
€ million |
% |
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Core volume growth1 |
+4.4% |
–14.4% |
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–1.0% |
–9.8% |
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Sales |
898 |
648 |
–27.8 |
1,758 |
1,381 |
–21.4 |
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Change in sales |
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Volume |
+5.7% |
–16.4% |
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+1.5% |
–9.6% |
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Price |
–18.8% |
–7.8% |
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–15.8% |
–8.6% |
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Currency |
+1.7% |
–0.1% |
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+2.1% |
+0.4% |
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Portfolio |
–3.6% |
–3.5% |
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–3.6% |
–3.6% |
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Sales by region |
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EMLA |
306 |
197 |
–35.6 |
595 |
459 |
–22.9 |
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NAFTA |
190 |
121 |
–36.3 |
378 |
302 |
–20.1 |
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APAC |
402 |
330 |
–17.9 |
785 |
620 |
–21.0 |
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EBITDA |
154 |
96 |
–37.7 |
309 |
205 |
–33.7 |
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EBIT |
99 |
41 |
–58.6 |
204 |
95 |
–53.4 |
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Operating cash flows |
93 |
68 |
–26.9 |
231 |
103 |
–55.4 |
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Cash outflows for additions to property, plant, equipment and intangible assets |
42 |
34 |
–19.0 |
81 |
63 |
–22.2 |
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Free operating cash flow |
51 |
34 |
–33.3 |
150 |
40 |
–73.3 |
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Second quarter of 2020
In the second quarter of 2020, core volumes in the Polycarbonates segment fell by 14.4% from the prior-year quarter. Sales shifts between the customer industries were able to mitigate the negative effects of the coronavirus pandemic. For instance, volume losses due to a sharp decline in demand in the automotive and transportation industry were limited by less significant decreases in volumes sold in the electrical, electronics and household appliances industry and volume growth in the construction sector.
In the Polycarbonates segment, sales were down by 27.8% to €648 million in the second quarter of 2020 (previous year: €898 million). Sales decreased by 16.4% due to a downturn in total volumes and by 7.8% as a result of lower average selling prices. In addition, exchange rate movements had a negative effect on sales of 0.1%. Moreover, the portfolio effect from the sale of the European polycarbonate sheets business in the first quarter of 2020 decreased sales in the second quarter of 2020 by 3.5%.
In the EMLA region, sales were down 35.6% to €197 million (previous year: €306 million). A decline in total volumes, the aforementioned portfolio effect and lower average selling prices each had a significant negative effect on sales. In contrast, exchange rate movements were neutral on the whole with regard to sales. In the NAFTA region, sales decreased by 36.3% to €121 million (previous year: €190 million), mainly on account of a sharp drop in total volumes sold. The selling price level also put slight downward pressure on sales. In contrast, exchange rate changes had no notable effect on sales. In the APAC region, sales fell by 17.9% to €330 million (previous year: €402 million). A significant downturn in average selling prices and substantially lower total volumes decreased sales, whereas exchange rate movements had no noticeable effect on sales.
Polycarbonates
Quarterly Sales
€ million
Polycarbonates
Quarterly EBITDA
€ million
In the second quarter of 2020, EBITDA in the Polycarbonates segment decreased 37.7% from the prior-year quarter, coming in at €96 million (previous year: €154 million). Lower volumes negatively affected earnings. In addition, a reduction in selling prices outweighed the effect of lower raw material prices and led to a decline in margins.
EBIT dropped by 58.6% to €41 million (previous year: €99 million).
Free operating cash flow fell 33.3% to €34 million (previous year: €51 million). The key driver of this development was the decline in EBITDA, which stood in contrast to lower cash tied up in working capital.
First half of 2020
In the first half of 2020, core volumes in the Polycarbonates segment were 9.8% lower than in the prior-year period. The negative effects of the coronavirus pandemic were mitigated by shifts in sales between the customer industries. A steep decline in demand from the automotive and transportation industry, which led to lower volumes, was offset by less sharp decreases in volumes sold in the electrical, electronics and household appliances industry and rising volumes in the construction sector.
Sales in the Polycarbonates segment decreased by 21.4% to €1,381 million in the first half of 2020 (previous year: €1,758 million). Lower total volumes reduced sales by 9.6%, and a decline in average selling prices caused an 8.6% drop in sales. Exchange rate changes had a positive effect on sales totaling 0.4%, whereas the portfolio effect from the sale of the European polycarbonate sheets business in the first quarter of 2020 decreased sales in the first half of 2020 by 3.6%.
In the first half of 2020, EBITDA in the Polycarbonates segment decreased by 33.7% compared with the prior-year period, coming in at €205 million (previous year: €309 million), mostly on account of the downturn in total volumes sold. At the same time, the drop in selling prices outweighed the effect of the decline in raw material prices and led to lower margins.
EBIT was down by 53.4% to €95 million (previous year: €204 million).
Free operating cash flow fell by 73.3% to €40 million (previous year: €150 million), mainly on account of lower EBITDA.