Polycarbonates
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1st quarter 2019 |
1st quarter 2020 |
Change |
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€ million |
€ million |
% |
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Core volume growth1 |
–6.3% |
–4.9% |
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Sales |
860 |
733 |
–14.8 |
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Change in sales |
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Volume |
–2.9% |
–2.6% |
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Price |
–12.8% |
–9.6% |
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Currency |
+2.6% |
+1.0% |
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Portfolio |
–3.6% |
–3.6% |
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Sales by region |
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EMLA |
289 |
262 |
–9.3 |
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NAFTA |
188 |
181 |
–3.7 |
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APAC |
383 |
290 |
–24.3 |
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EBITDA |
155 |
109 |
–29.7 |
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EBIT |
105 |
54 |
–48.6 |
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Operating cash flows |
138 |
35 |
–74.6 |
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Cash outflows for additions to property, plant, equipment and intangible assets |
39 |
29 |
–25.6 |
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Free operating cash flow |
99 |
6 |
–93.9 |
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In the first quarter of 2020, core volumes in the Polycarbonates segment fell by 4.9% from the prior-year quarter. Volumes in the electrical, electronics and household appliances sector and the automotive industry in particular were down substantially. In contrast, volumes in the construction sector grew significantly, but were only sufficient to partly offset the aforementioned declines.
Sales in the Polycarbonates segment decreased by 14.8% to €733 million in the first quarter of 2020 (previous year: €860 million). A lower level of selling prices and drop in total volumes reduced sales by 9.6% and 2.6%, respectively. However, exchange rate movements led to sales growth of 1.0%. Moreover, the portfolio effect from the sale of the European polycarbonate sheets business in the first quarter of 2020 adversely affected sales, which decreased by 3.6%.
In the EMLA region, sales were down by 9.3% to €262 million (previous year: €289 million). Changes in selling prices and the aforementioned portfolio effect caused a substantial reduction in sales. In comparison, a sharp increase in total volumes had a positive impact on sales. Exchange rate fluctuations had no notable overall effect. The NAFTA region’s sales declined by 3.7% to €181 million (previous year: €188 million) as the result of significantly lower average selling prices. In contrast, the changes in total volumes and exchange rates increased sales modestly. Sales in the APAC region saw a sharp downturn due to the effects of the coronavirus pandemic, falling by 24.3% to €290 million (previous year: €383 million). This was evident in a significant decline in total volumes and considerably lower selling prices. Exchange rate changes improved sales slightly.
In the first quarter of 2020, EBITDA in the Polycarbonates segment decreased by 29.7% from the prior-year quarter, falling to €109 million (previous year: €155 million). The driver of this development was a lower selling price level, which led to reduced margins despite a decline in raw material prices.
EBIT was down by 48.6% to €54 million in the first quarter of 2020 (previous year: €105 million).
Free operating cash flow fell to €6 million in the first quarter of 2020, a reduction of 93.9% (previous year: €99 million). This was attributable to a downturn in EBITDA and an increase in cash tied up in working capital.