Polyurethanes

Polyurethanes Key Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3rd quarter 20181

 

3rd quarter 2019

 

Change

 

1st nine months 20181

 

1st nine months 2019

 

Change

 

 

€ million

 

€ million

 

%

 

€ million

 

€ million

 

%

1

Reference information was not restated; see section “Changes in Accounting as a Result of the Initial Application of IFRS 16.”

2

Reference values calculated on the basis of the definition of the core business effective March 31, 2019

Core volume growth2

 

–2.0%

 

+5.1%

 

 

 

+0.3%

 

+1.9%

 

 

Sales

 

1,849

 

1,478

 

–20.1

 

5,765

 

4,443

 

–22.9

Change in sales

 

 

 

 

 

 

 

 

 

 

 

 

Volume

 

+0.1%

 

+2.5%

 

 

 

+0.2%

 

+2.1%

 

 

Price

 

–0.5%

 

–24.4%

 

 

 

+8.6%

 

–26.9%

 

 

Currency

 

–0.8%

 

+1.8%

 

 

 

–4.2%

 

+1.9%

 

 

Portfolio

 

0.0%

 

0.0%

 

 

 

0.0%

 

0.0%

 

 

Sales by region

 

 

 

 

 

 

 

 

 

 

 

 

EMLA

 

773

 

629

 

–18.6

 

2,504

 

1,941

 

–22.5

NAFTA

 

512

 

431

 

–15.8

 

1,473

 

1,286

 

–12.7

APAC

 

564

 

418

 

–25.9

 

1,788

 

1,216

 

–32.0

EBITDA

 

432

 

196

 

–54.6

 

1,652

 

525

 

–68.2

EBIT

 

346

 

97

 

–72.0

 

1,385

 

226

 

–83.7

Operating cash flows

 

453

 

173

 

–61.8

 

993

 

293

 

–70.5

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

 

113

 

135

 

+19.5

 

243

 

375

 

+54.3

Free operating cash flow

 

340

 

38

 

–88.8

 

750

 

(82)

 

.

In the third quarter of 2019, core volumes in the Polyurethanes segment were 5.1% higher than in the prior-year quarter. The upswing in volumes in the furniture and electrical/electronics industries, especially in household appliances, and in the construction sector more than offset weaker demand from the automotive industry.

Sales in the Polyurethanes segment were down 20.1% to €1,478 million in the third quarter of 2019 (previous year: €1,849 million). The trend in average selling prices had a negative impact on sales of 24.4%, chiefly due to more intense competitive pressure. Total volumes had a positive effect of 2.5% on sales. Moreover, exchange rate movements increased sales by 1.8%.

In the EMLA region, sales were down 18.6% from the prior-year quarter to €629 million (previous year: €773 million) on account of a significant decline in selling prices. In contrast, total volumes saw a slight increase. Changes in exchange rates had no notable overall effect on sales. Sales in the NAFTA region decreased by 15.8% to €431 million (previous year: €512 million). Much lower selling prices and a slight downturn in total volumes combined to impact sales, which declined. Conversely, exchange rate fluctuations had a slightly positive effect on sales. In the APAC region, sales decreased by 25.9% to €418 million (previous year: €564 million) due to a considerable drop in selling prices. Higher total volumes had a significant positive effect and changes in exchange rates had a mildly positive impact on sales.

In the third quarter of 2019, EBITDA in the Polyurethanes segment declined by 54.6% compared with the prior-year quarter, decreasing to €196 million (previous year: €432 million). Despite a decline in raw material prices, lower selling prices led to a significant drop in margins. In contrast, volumes had a positive effect on EBITDA.

EBIT was down by 72.0% in the reporting period, dropping to €97 million (previous year: €346 million).

In the third quarter of 2019, free operating cash flow decreased by 88.8% to €38 million (previous year: €340 million). This is mainly due to the decline in EBITDA and an overall build-up of funds tied up in working capital, especially in liabilities, as well as higher cash outflows for additions to property, plant, equipment and intangible assets.