Polycarbonates

Polycarbonates Key Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3rd quarter 2017

 

3rd quarter 2018

 

Change

 

1st nine months 2017

 

1st nine months 2018

 

Change

 

 

€ million

 

€ million

 

%

 

€ million

 

€ million

 

%

1 Reference values calculated based on the definition of the core business effective March 31, 2018

Core volume growth1

 

+1.5%

 

+2.6%

 

 

 

+5.4%

 

+3.5%

 

 

Sales

 

933

 

1,038

 

+11.3

 

2,798

 

3,127

 

+11.8

Change in sales

 

 

 

 

 

 

 

 

 

 

 

 

Volume

 

+4.4%

 

+5.1%

 

 

 

+7.9%

 

+3.6%

 

 

Price

 

+9.4%

 

+9.6%

 

 

 

+6.2%

 

+13.7%

 

 

Currency

 

–3.8%

 

–0.6%

 

 

 

–0.6%

 

–4.6%

 

 

Portfolio

 

0.0%

 

–2.8%

 

 

 

0.0%

 

–0.9%

 

 

Sales by region

 

 

 

 

 

 

 

 

 

 

 

 

EMLA

 

299

 

331

 

+10.7

 

926

 

1,046

 

+13.0

NAFTA

 

212

 

205

 

–3.3

 

668

 

617

 

–7.6

APAC

 

422

 

502

 

+19.0

 

1,204

 

1,464

 

+21.6

EBITDA

 

211

 

315

 

+49.3

 

640

 

903

 

+41.1

EBIT

 

167

 

272

 

+62.9

 

503

 

773

 

+53.7

Operating cash flows

 

170

 

185

 

+8.8

 

231

 

419

 

+81.4

Cash outflows for additions to property, plant, equipment and intangible assets

 

36

 

49

 

+36.1

 

81

 

116

 

+43.2

Free operating cash flow

 

134

 

136

 

+1.5

 

150

 

303

 

>100

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.