Solutions & Specialties
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
3rd quarter 2022 |
|
3rd quarter 2023 |
|
Change |
|
1st nine months 2022 |
|
1st nine months 2023 |
|
Change |
||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sales (external) |
|
€2,196 million |
|
€1,809 million |
|
–17.6% |
|
€6,583 million |
|
€5,564 million |
|
–15.5% |
||||||
Intersegment sales |
|
€11 million |
|
€6 million |
|
–45.5% |
|
€28 million |
|
€21 million |
|
–25.0% |
||||||
Sales (total) |
|
€2,207 million |
|
€1,815 million |
|
–17.8% |
|
€6,611 million |
|
€5,585 million |
|
–15.5% |
||||||
Change in sales (external) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Volume |
|
–7.2% |
|
–3.7% |
|
|
|
–5.4% |
|
–8.0% |
|
|
||||||
Price |
|
5.7% |
|
–8.9% |
|
|
|
11.6% |
|
–5.3% |
|
|
||||||
Currency |
|
7.6% |
|
–5.0% |
|
|
|
6.7% |
|
–2.2% |
|
|
||||||
Portfolio |
|
0.0% |
|
0.0% |
|
|
|
5.7% |
|
0.0% |
|
|
||||||
Sales by region (external) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
EMLA |
|
€798 million |
|
€653 million |
|
–18.2% |
|
€2,522 million |
|
€2,144 million |
|
–15.0% |
||||||
NA |
|
€543 million |
|
€461 million |
|
–15.1% |
|
€1,607 million |
|
€1,433 million |
|
–10.8% |
||||||
APAC |
|
€855 million |
|
€695 million |
|
–18.7% |
|
€2,454 million |
|
€1,987 million |
|
–19.0% |
||||||
EBITDA1 |
|
€280 million |
|
€246 million |
|
–12.1% |
|
€717 million |
|
€632 million |
|
–11.9% |
||||||
EBIT1 |
|
€207 million |
|
€178 million |
|
–14.0% |
|
€498 million |
|
€390 million |
|
–21.7% |
||||||
Cash flows from operating activities2 |
|
€142 million |
|
€247 million |
|
73.9% |
|
(€42 million) |
|
€447 million |
|
. |
||||||
Cash outflows for additions to property, plant, equipment and intangible assets |
|
€77 million |
|
€62 million |
|
–19.5% |
|
€178 million |
|
€160 million |
|
–10.1% |
||||||
Free operating cash flow2 |
|
€65 million |
|
€185 million |
|
184.6% |
|
(€220 million) |
|
€287 million |
|
. |
||||||
|
||||||||||||||||||
In the Solutions & Specialties segment, third-quarter sales in 2023 were down 17.6% to €1,809 million (previous year: €2,196 million). This was primarily driven by an 8.9% decline in average selling prices – due in particular to weak demand worldwide. At the same time, exchange rate movements and lower volumes sold had a reducing effect on sales of 5.0% and 3.7% respectively.
The EMLA region’s sales decreased 18.2% to €653 million (previous year: €798 million), driven by a significant decline in sales volumes and considerably lower average selling prices. Exchange rate movements had no notable effect on sales. In the NA region, sales were down 15.1% to 461 million (previous year: €543 million), mainly on account of a considerable drop in the selling price level. At the same time, exchange rate movements and lower volumes sold each had a minor reducing effect on sales. Sales in the APAC region declined by 18.7% to 695 million (previous year: €855 million), The main drivers of this development were exchange rate movements and lower average selling prices, each of which had a considerable negative effect on sales. Changes in volumes sold had no notable effect on sales.
In the third quarter of 2023, EBITDA in the Solutions & Specialties segment was down 12.1% on the prior-year quarter, declining to €246 million (previous year: €280 million). This was mainly attributable to the change in provisions for short-term variable compensation and exchange rate movements. Other factors contributing to the reduction in EBITDA were a decline in volumes sold and a lower amount of business development subsidies received in China attributable to the segment compared with the prior-year quarter. In contrast, lower fixed costs had an increasing effect on earnings. The margins had no notable impact on earnings, since the demand-induced decrease in selling prices was almost fully offset by lower raw material and energy costs.
In the third quarter of 2023, EBIT decreased by 14.0% to €178 million (previous year: €207 million).
Free operating cash flow improved in the third quarter of 2023 to €185 million (previous year: €65 million). This was driven primarily by funds freed up from working capital, compared with funds tied up in the prior-year quarter. This effect is largely due to the change in inventories. In addition, a decline in cash outflows for property, plant and equipment and intangible assets had a positive effect on free operating cash flow. Lower EBITDA, on the other hand, had a negative effect on free operating cash flow.