Polyurethanes

In the first quarter of 2021, the core volumes sold in the Polyurethanes segment increased by 2.5% over the prior-year quarter. Contributing factors here primarily included the positive volume development in the electrical, electronics and household appliances industry and in the automotive and transportation industry, chiefly due to greater demand in the APAC region. The prior-year quarter was marked by the effects of the coronavirus pandemic, particularly in the APAC region. At the same time, unplanned weather-related production stoppages in the Polyurethanes segment’s NA region in the current quarter led to reduced product availability and limited potential growth.

The Polyurethanes segment’s sales were up by 30.7% to €1,665 million in the first quarter of 2021 (previous year: €1,274 million). The key driver here was the higher selling price level, mainly due to an advantageous competitive situation. This increased sales by 36.1%. The development of total volumes sold had a positive effect on sales of 0.2%. Exchange rate movements, however, had a negative effect of 5.6%.

In the EMLA region, sales grew by 36.5% over the prior-year quarter to €804 million (previous year: €589 million) on account of a sharp increase in average selling prices. A decline in total volumes sold there and the change in exchange rates each had a slightly negative effect on sales. In the NA region, sales dropped by 9.6% to €357 million (previous year: €395 million). The key factors here were the development in total volumes sold and in exchange rates, each of which put significant downward pressure on sales. In contrast, an increased selling price level had a strong positive effect on sales. Sales in the APAC region climbed by 73.8% to €504 million (previous year: €290 million). This was due to factors including a rise in average selling prices and higher total volumes sold, both of which gave sales a significant boost. In contrast, exchange rate movements had a considerable negative impact on sales.

EBITDA in the Polyurethanes segment was up over the prior-year quarter to €443 million in the first quarter of 2021 (previous year: €50 million). The key drivers here were the higher selling price level and lower selling and general administrative costs, which were achieved mainly by implementing cost-cutting measures. In contrast, higher provisions for variable compensation and a temporary increase in cost of goods sold, mainly due to unplanned production stoppages, reduced earnings.

In the first quarter of 2021, EBIT jumped to €340 million (previous year: €–51 million).

Free operating cash flow rose to €131 million in the first quarter of 2021 (previous year: €–170 million), mainly on account of the increase in EBITDA and lower cash outflows for additions to property, plant and equipment.