Polycarbonates

In the first quarter of 2021, core volumes sold by the Polycarbonates segment increased by 11.6% over the prior-year quarter. The key driver of this development was a strong resurgence of demand that had begun in the second half of 2020. Demand had declined substantially in the prior-year quarter as a result of the coronavirus pandemic, particularly in the APAC region. The upsurge in demand led to an increase in core volumes sold in the electrical, electronics and household appliances industry and in the automotive and transportation industry, especially in the APAC region. At the same time, unplanned weather-related production stoppages in the Polycarbonates segment’s NA region led to reduced product availability and limited our growth potential.

In the first quarter of 2021, sales in the Polycarbonates segment were up by 21.3% to €889 million (previous year: €733 million). Higher average selling prices due to an advantageous competitive situation as well as an increase in total volumes sold led to positive effects on sales of 13.8% and 12.5%, respectively. Exchange rate movements reduced sales by 5.0% in contrast.

In the EMLA region, sales were up by 11.5% to €292 million (previous year: €262 million). The change in total volumes sold had a significant positive impact on sales, while higher selling prices lifted sales slightly. However, exchange rate movements were neutral overall in terms of sales. In the NA region, sales dropped by 18.8% to €147 million (previous year: €181 million). Contributing factors here were the decline in total volumes sold and exchange rate movements, both of which had a considerable adverse effect on sales. The average selling price level remained stable in this region compared with the prior-year quarter. In the APAC region, sales climbed by 55.2% to €450 million (previous year: €290 million). The changes in selling prices and total volumes sold each contributed to very strong sales growth. However, exchange rate movements reduced sales considerably.

EBITDA in the Polycarbonates segment grew over the prior-year quarter, amounting to €222 million in the first quarter of 2021 (previous year: €109 million). The increase in selling prices and decrease in raw material prices led to significantly higher margins, which bumped up earnings. Growth in total volumes sold also had a positive effect on EBITDA. However, higher provisions for variable compensation reduced earnings.

In the first quarter of 2021, EBIT increased to €168 million (previous year: €54 million).

Free operating cash flow was up, amounting to €89 million in the first quarter of 2021 (previous year: €6 million), largely due to the improvement in EBITDA. The year-over-year increase in funds tied up in working capital was offset by decreased cash outflows for additions to property, plant and equipment.