Solutions & Specialties
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3rd quarter 20201 |
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3rd quarter 2021 |
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Change |
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1st nine months 20201 |
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1st nine months 2021 |
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Change |
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€ million |
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€ million |
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% |
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€ million |
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€ million |
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% |
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Core volume growth2 |
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+22.7% |
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+31.0% |
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Sales (external) |
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1,288 |
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2,069 |
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+60.6 |
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3,689 |
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5,549 |
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+50.4 |
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Intersegment sales |
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7 |
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8 |
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+14.3 |
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18 |
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19 |
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+5.6 |
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Sales (total) |
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1,295 |
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2,077 |
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+60.4 |
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3,707 |
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5,568 |
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+50.2 |
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Change in sales |
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Volume |
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+6.9% |
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+17.5% |
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Price |
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+29.5% |
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+19.7% |
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Currency |
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+1.8% |
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–2.8% |
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Portfolio |
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+22.4% |
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+16.0% |
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Sales by region |
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EMLA |
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457 |
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758 |
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+65.9 |
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1,395 |
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2,113 |
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+51.5 |
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NA |
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297 |
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437 |
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+47.1 |
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870 |
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1,137 |
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+30.7 |
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APAC |
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534 |
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874 |
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+63.7 |
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1,424 |
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2,299 |
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+61.4 |
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EBITDA3 |
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207 |
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173 |
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–16.4 |
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522 |
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568 |
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+8.8 |
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EBIT3 |
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161 |
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106 |
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–34.2 |
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385 |
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391 |
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+1.6 |
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Cash flows from operating activities |
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136 |
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82 |
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–39.7 |
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345 |
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189 |
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–45.2 |
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Cash outflows for additions to property, plant, equipment and intangible assets |
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51 |
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66 |
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+29.4 |
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133 |
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151 |
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+13.5 |
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Free operating cash flow |
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85 |
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16 |
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–81.2 |
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212 |
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38 |
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–82.1 |
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In the third quarter of 2021, core volumes sold in the Solutions & Specialties segment rose by 22.7% over the prior-year quarter. This development was mainly due to additional volumes from the acquisition of the Resins & Functional Materials (RFM) business. At the same time, reduced product availability, for instance due to raw material bottlenecks, had a negative impact on core volumes sold and therefore limited our growth opportunities.
In the third quarter of 2021, sales in the Solutions & Specialties segment grew by 60.6% to €2,069 million (previous year: €1,288 million). An increase in average selling prices caused by higher raw material and energy prices and an advantageous competitive situation increased sales by 29.5%. At the same time, the portfolio effect stemming from the RFM acquisition gave sales a 22.4% boost. Growth in total volumes sold also had a positive effect on sales of 6.9%. Exchange rate changes increased sales by 1.8%.
In the EMLA region, sales were up 65.9% to €758 million (previous year: €457 million). Key drivers here were the aforementioned portfolio effect and an increase in average selling prices, both of which substantially increased sales. Higher total volumes sold likewise triggered significant sales growth. Exchange rate movements had no notable effect on sales. In the NA region, sales were up 47.1% to €437 million (previous year: €297 million), mainly on account of the aforementioned portfolio effect. Increases in selling prices and total volumes sold both caused sales to rise considerably. Exchange rate changes remained neutral overall with respect to sales. In the APAC region, sales were up 63.7% to €874 million (previous year: €534 million). Changes in average selling prices had a strong positive effect on sales. The aforementioned portfolio effect also increased sales considerably. At the same time, exchange rate movements and an increase in total volumes sold each had a slightly positive impact on sales.
In the third quarter of 2021, EBITDA in the Solutions & Specialties segment declined by 16.4% from the prior-year quarter, decreasing to €173 million (previous year: €207 million). Increased raw material prices, for instance from the intersegment business, offset higher selling prices and led to lower margins, which reduced earnings. At the same time, higher provisions for variable compensation had a negative effect on EBITDA. Besides, total volumes sold were up, which increased earnings.
EBIT was down by 34.2% to €106 million in the third quarter of 2021 (previous year: €161 million).
In the third quarter of 2021, free operating cash flow dropped by 81.2% to €16 million (previous year: €85 million). Contributing factors here included the decline in EBITDA and a year-over-year increase in funds tied up in working capital.