Polyurethanes
|
|
|
|
|
|
|
|||||||||||
|
3rd quarter 20181 |
3rd quarter 2019 |
Change |
1st nine months 20181 |
1st nine months 2019 |
Change |
|||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
€ million |
€ million |
% |
€ million |
€ million |
% |
|||||||||||
|
|||||||||||||||||
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.