Polyurethanes

Polyurethanes Key Data1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3rd quarter 2017

 

3rd quarter 2018

 

Change

 

1st nine months 2017

 

1st nine months 2018

 

Change

 

 

€ million

 

€ million

 

%

 

€ million

 

€ million

 

%

1 All prior-year figures have been adjusted to reflect the transfer of the specialty elastomers business from the Polyurethanes segment to the Coatings, Adhesives, Specialties segment as of January 1, 2018.

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

Core volume growth2

 

+4.1%

 

–2.0%

 

 

 

+2.4%

 

+0.3%

 

 

Sales

 

1,871

 

1,849

 

–1.2

 

5,510

 

5,765

 

+4.6

Change in sales

 

 

 

 

 

 

 

 

 

 

 

 

Volume

 

+2.6%

 

+0.1%

 

 

 

+2.3%

 

+0.2%

 

 

Price

 

+31.0%

 

–0.5%

 

 

 

+28.9%

 

+8.6%

 

 

Currency

 

–3.8%

 

–0.8%

 

 

 

–0.4%

 

–4.2%

 

 

Portfolio

 

0.0%

 

0.0%

 

 

 

0.0%

 

0.0%

 

 

Sales by region

 

 

 

 

 

 

 

 

 

 

 

 

EMLA

 

805

 

773

 

–4.0

 

2,360

 

2,504

 

+6.1

NAFTA

 

472

 

512

 

+8.5

 

1,426

 

1,473

 

+3.3

APAC

 

594

 

564

 

–5.1

 

1,724

 

1,788

 

+3.7

EBITDA

 

550

 

432

 

–21.5

 

1,567

 

1,652

 

+5.4

EBIT

 

460

 

346

 

–24.8

 

1,297

 

1,385

 

+6.8

Operating cash flows

 

511

 

453

 

–11.4

 

757

 

993

 

+31.2

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

 

60

 

113

 

+88.3

 

150

 

243

 

+62.0

Free operating cash flow

 

451

 

340

 

–24.6

 

607

 

750

 

+23.6

In the third quarter of 2018, core volumes in the Polyurethanes segment were down 2.0% from the prior-year quarter.

Sales in the Polyurethanes segment declined 1.2% to €1,849 million in the third quarter of 2018 (previous year: €1,871 million). Total volumes matched the level of the prior-year quarter, whereas the changes in average selling prices and exchange rate movements reduced sales by 0.5% and 0.8%, respectively.

In the EMLA region, sales slid 4.0% to €773 million (previous year: €805 million). Despite selling prices that were stable as compared with the prior-year quarter, the changes in total volumes and exchange rates caused a moderate decline in sales. In the NAFTA region, sales grew 8.5% to €512 million (previous year: €472 million). A significant increase in selling prices and slightly higher total volumes had a positive effect on sales. The effects of exchange rate changes remained neutral. Sales in the APAC region declined by 5.1% to €564 million (previous year: €594 million). Total volumes were somewhat higher, while selling prices saw a considerable decrease. Exchange rate developments reduced sales slightly.

The Polyurethanes segment’s EBITDA was down 21.5% in the third quarter of 2018 to €432 million (previous year: €550 million). The increase in raw material costs primarily contributed to the downward pressure on earnings, while average selling prices and volumes were stable.

EBIT declined 24.8% during the same period to €346 million (previous year: €460 million).

In the third quarter of 2018, free operating cash flow was €340 million, 24.6% below the previous year’s figure of €451 million, which was mainly a result of the decline in EBITDA.