Polyurethanes
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2nd quarter 20181 |
2nd quarter 2019 |
Change |
1st half 20181 |
1st half 2019 |
Change |
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€ million |
€ million |
% |
€ million |
€ million |
% |
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Core volume growth2 |
+3.9% |
+0.7% |
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+1.4% |
+0.3% |
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Sales |
1,966 |
1,489 |
–24.3 |
3,916 |
2,965 |
–24.3 |
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Change in sales |
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Volume |
+3.3% |
+0.8% |
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+0.3% |
+1.9% |
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Price |
+9.2% |
–26.8% |
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+13.2% |
–28.1% |
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Currency |
–4.4% |
+1.7% |
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–5.9% |
+1.9% |
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Portfolio |
0.0% |
0.0% |
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0.0% |
0.0% |
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Sales by region |
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EMLA |
871 |
643 |
–26.2 |
1,731 |
1,312 |
–24.2 |
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NAFTA |
486 |
444 |
–8.6 |
961 |
855 |
–11.0 |
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APAC |
609 |
402 |
–34.0 |
1,224 |
798 |
–34.8 |
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EBITDA |
583 |
172 |
–70.5 |
1,220 |
329 |
–73.0 |
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EBIT |
492 |
72 |
–85.4 |
1,039 |
129 |
–87.6 |
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Operating cash flows |
364 |
116 |
–68.1 |
540 |
120 |
–77.8 |
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Cash outflows for additions to property, plant, equipment and intangible assets |
84 |
138 |
+64.3 |
130 |
240 |
+84.6 |
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Free operating cash flow |
280 |
(22) |
. |
410 |
(120) |
. |
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Second quarter of 2019
In the second quarter of 2019, core volume growth in Polyurethanes totaled 0.7%. Positive growth in volumes in the furniture and construction sectors was able to balance out weaker demand from the automotive industry.
Sales in the Polyurethanes segment amounted to €1,489 million, down 24.3% from the prior-year quarter (previous year: €1,966 million), mainly due to a 26.8% decrease in selling prices as a result of increased competition. Volumes had a 0.8% effect on sales. In addition, exchange rate movements had a positive effect of 1.7% on sales.
The EMLA region’s sales dropped 26.2% to €643 million (previous year: €871 million) due to much lower average selling prices. Stable total volumes and neutral exchange rate effects stood in contrast to this development. In the NAFTA region, sales declined by 8.6% to €444 million (previous year: €486 million). A significant increase in total volumes and very positive exchange rate effects could not offset the significantly lower selling price level. Sales in the APAC region declined 34.0% to €402 million (previous year: €609 million). Considerably lower average selling prices and total volumes had a negative effect on sales, whereas exchange rate movements improved sales slightly.
Polyurethanes
Quarterly Sales
€ million
Polyurethanes
Quarterly EBITDA
€ million
1 Reference information was not restated, see Note 2.1 “Financial Reporting Standards Applied for the First Time in the Reporting Period.”
In the second quarter of 2019, EBITDA in the Polyurethanes segment decreased 70.5% compared with the prior-year quarter, dropping to €172 million (previous year: €583 million). This decline was driven by the strongly negative development of selling prices as a result of increased competition.
EBIT declined to €72 million (previous year: €492 million).
Free operating cash flow decreased to minus €22 million (previous year: €280 million). The main reasons for this were lower EBITDA and higher cash outflows for additions to property, plant and equipment. In contrast, freeing up working capital in inventories and other items positively influenced free operating cash flow.
First half of 2019
In the first half of 2019, core volume growth in Polyurethanes was 0.3%.
Sales in the segment declined 24.3% to €2,965 million (previous year: €3,916 million) in the same period. Selling prices were down 28.1%, which had a negative effect on sales, whereas an increase in total volumes gave sales a 1.9% boost. Exchange rate fluctuations had a positive impact of 1.9% on sales.
EBITDA declined 73.0% to €329 million (previous year: €1,220 million) on account of the significantly negative change in selling prices.
EBIT decreased 87.6% to €129 million (previous year: €1,039 million).
Free operating cash flow fell to minus €120 million (previous year: €410 million). The key reasons for this development were lower EBITDA and higher cash outflows for additions to property, plant and equipment. Freeing up working capital in inventories and receivables had a positive effect.