Polycarbonates
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1st quarter 20181 |
1st quarter 2019 |
Change |
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€ million |
€ million |
% |
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Core volume growth2 |
+2.7% |
–6.3% |
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Sales |
1,033 |
860 |
–16.7 |
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Change in sales |
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Volume |
+0.2% |
–2.9% |
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Price |
+16.3% |
–12.8% |
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Currency |
–8.2% |
+2.6% |
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Portfolio |
0.0% |
–3.6% |
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Sales by region |
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EMLA |
362 |
289 |
–20.2 |
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NAFTA |
203 |
188 |
–7.4 |
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APAC |
468 |
383 |
–18.2 |
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EBITDA |
303 |
155 |
–48.8 |
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EBIT |
260 |
105 |
–59.6 |
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Operating cash flows |
79 |
138 |
+74.7 |
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Cash outflows for additions to property, plant, equipment and intangible assets |
23 |
39 |
+69.6 |
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Free operating cash flow |
56 |
99 |
+76.8 |
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In the first quarter of 2019, core volumes in the Polycarbonates segment were 6.3% lower than in the prior-year period.
The Polycarbonates segment’s sales slipped by 16.7% to €860 million (previous year: €1,033 million) in the first quarter of 2019. Average selling prices impacted sales, which dropped by 12.8%, while the decline in total volumes sold resulted in sales dipping by 2.9%. Exchange rate fluctuations had a positive impact of 2.6%. Moreover, the portfolio effect from the sale of the U.S. sheets business in the third quarter of 2018 also impacted sales, which decreased by 3.6%.
The EMLA region’s sales dropped by 20.2% to €289 million (previous year: €362 million) due to much lower total volumes sold and average selling prices. The effect of exchange rate developments remained neutral. In the NAFTA region, sales declined by 7.4% to €188 million (previous year: €203 million), chiefly due to the aforementioned portfolio effect, which resulted in sales in the region declining considerably. A slight drop in the average selling price level was more than balanced out by a significant increase in total volumes sold and the strongly positive effects of exchange rate movements. Sales in the APAC region declined by 18.2% to €383 million (previous year: €468 million), with lower average selling prices exerting a considerable negative effect on sales. Conversely, the slight increase in total volumes sold and minor positive effect of exchange rate fluctuations resulted in higher sales.
EBITDA in the Polycarbonates segment in the first quarter of 2019 decreased by 48.8% compared with the prior-year quarter, dropping to €155 million (previous year: €303 million). In view of stable raw material prices overall, a drop in selling prices led to lower margins. In addition, a downturn in volumes and the portfolio effect from the sale of the U.S. sheets business adversely affected EBITDA.
EBIT was down by 59.6% in the same period, dropping to €105 million (previous year: €260 million).
In contrast, free operating cash flow improved by 76.8% to €99 million in the first quarter of 2019 (previous year: €56 million). In particular, the overall greater availability of working capital more than compensated for the lower EBITDA.