Performance Materials
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1st quarter 2022 |
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1st quarter 2023 |
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Change |
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Sales (external) |
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€2,388 million |
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€1,792 million |
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–25.0% |
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Intersegment sales1 |
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€810 million |
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€607 million |
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–25.1% |
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Sales (total) |
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€3,198 million |
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€2,399 million |
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–25.0% |
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Change in sales (external) |
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Volume |
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5.5% |
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–18.6% |
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Price |
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26.4% |
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–7.1% |
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Currency |
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5.3% |
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0.7% |
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Portfolio |
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0.0% |
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0.0% |
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Sales by region (external) |
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EMLA |
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€1,142 million |
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€839 million |
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–26.5% |
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NA |
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€604 million |
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€489 million |
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–19.0% |
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APAC |
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€642 million |
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€464 million |
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–27.7% |
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EBITDA2 |
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€620 million |
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€173 million |
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–72.1% |
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EBIT2 |
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€475 million |
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€29 million |
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–93.9% |
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Cash flows from operating activities3 |
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€206 million |
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€19 million |
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–90.8% |
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Cash outflows for additions to property, plant, equipment and intangible assets |
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€94 million |
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€76 million |
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–19.1% |
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Free operating cash flow3 |
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€112 million |
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(€57 million) |
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. |
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In the Performance Materials segment, first quarter sales in 2023 were down 25.0% to €1,792 million (previous year: €2,388 million). A decline in volumes sold due to demand and availability factors had an adverse effect on sales of 18.6%. At the same time, lower average selling prices had a negative effect of 7.1% on sales – mainly due to weaker demand. Exchange rate movements caused sales to rise by 0.7%.
Sales in the EMLA region were down by 26.5% from the prior-year quarter to €839 million (previous year: €1,142 million), driven by a considerable drop in volumes sold. Changes in selling prices and in exchange rates both had an overall neutral effect on sales. In the NA region, sales declined by 19.0% to €489 million (previous year: €604 million). This is attributable to lower average selling prices and a reduction in volumes sold, both of which caused sales to decline significantly. Exchange rate movements, in contrast, had a slightly positive effect on sales. Sales in the APAC region were down by 27.7% to €464 million (previous year: €642 million). A decline in volumes sold and changes in the selling price level both had a considerable negative effect on sales. Furthermore, changes in exchange rates also had the effect of slightly reducing sales.
In the first quarter of 2023, the Performance Materials segment’s EBITDA was down 72.1% on the prior-year quarter, declining to €173 million (previous year: €620 million). This was mainly driven by lower margins, to which both higher raw material prices and a decline in selling prices – as a result of weak demand – contributed. In addition, the drop in volumes sold for demand and availability-related reasons had a negative effect on earnings. In contrast, lower provisions for short-term variable compensation boosted earnings. Exchange rate movements had no notable effect on sales.
In the first quarter of 2023, EBIT decreased by 93.9% to €29 million (previous year: €475 million).
Free operating cash flow in the first quarter of 2023 declined to €–57 million (previous year: €112 million), driven primarily by the drop in EBITDA. In contrast, a smaller amount of cash tied up in working capital than in the prior-year quarter, caused above all by changes in inventories and trade accounts receivable, as well as lower cash outflows for additions to property, plant and equipment had a beneficial effect on free operating cash flow.