Polycarbonates
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3rd quarter 2017 |
3rd quarter 2018 |
Change |
1st nine months 2017 |
1st nine months 2018 |
Change |
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€ million |
€ million |
% |
€ million |
€ million |
% |
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Core volume growth1 |
+1.5% |
+2.6% |
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+5.4% |
+3.5% |
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Sales |
933 |
1,038 |
+11.3 |
2,798 |
3,127 |
+11.8 |
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Change in sales |
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Volume |
+4.4% |
+5.1% |
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+7.9% |
+3.6% |
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Price |
+9.4% |
+9.6% |
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+6.2% |
+13.7% |
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Currency |
–3.8% |
–0.6% |
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–0.6% |
–4.6% |
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Portfolio |
0.0% |
–2.8% |
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0.0% |
–0.9% |
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Sales by region |
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EMLA |
299 |
331 |
+10.7 |
926 |
1,046 |
+13.0 |
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NAFTA |
212 |
205 |
–3.3 |
668 |
617 |
–7.6 |
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APAC |
422 |
502 |
+19.0 |
1,204 |
1,464 |
+21.6 |
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EBITDA |
211 |
315 |
+49.3 |
640 |
903 |
+41.1 |
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EBIT |
167 |
272 |
+62.9 |
503 |
773 |
+53.7 |
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Operating cash flows |
170 |
185 |
+8.8 |
231 |
419 |
+81.4 |
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Cash outflows for additions to property, plant, equipment and intangible assets |
36 |
49 |
+36.1 |
81 |
116 |
+43.2 |
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Free operating cash flow |
134 |
136 |
+1.5 |
150 |
303 |
>100 |
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In the third quarter of 2018, core volumes in the Polycarbonates segment were 2.6% higher than in the prior-year quarter.
The Polycarbonates segment saw sales climb 11.3% to €1,038 million in the third quarter of 2018 (previous year: €933 million). Key drivers here were higher average selling prices in all regions compared with the prior-year period, which increased sales by 9.6%. The development of total volumes lifted sales by 5.1%, whereas changes in exchange rates diminished sales by 0.6%. In addition, the portfolio effect from the sale of the U.S. polycarbonate sheet business had an adverse effect on sales of 2.8%.
In the EMLA region, sales grew 10.7% to €331 million (previous year: €299 million), primarily due to a considerable rise in selling prices and minimal increase in total volumes. The effect of exchange rate movements remained largely steady. In the NAFTA region, sales slid 3.3% to €205 million (previous year: €212 million). This was mainly due to the aforementioned portfolio effect, which had a significant negative effect on sales. In contrast, a significant jump in total volumes and a minimal increase in average selling prices positively affected sales. Exchange rate movements had a neutral effect. Sales in the APAC region were up 19.0% to €502 million (previous year: €422 million). Much higher average selling prices and a small rise in total volumes outweighed the slightly negative effect of exchange rate movements.
In the third quarter of 2018, EBITDA in the Polycarbonates segment increased by 49.3% compared with the prior-year quarter, to €315 million (previous year: €211 million). Larger margins, higher volumes, and income from the sale of the U.S. polycarbonate sheet business amounting to €36 million had a positive effect on earnings.
EBIT improved 62.9% during the same period to €272 million (previous year: €167 million).
Free operating cash flow was up 1.5% to €136 million in the third quarter of 2018 (previous year: €134 million). The higher EBITDA was able to more than compensate for factors such as an increase in funds tied up in working capital.