Polyurethanes

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Polyurethanes Key Data

 

  

 

  

 

  

 

 

  

1st quarter 20181

  

1st quarter 2019

  

Change

 

  

€ million

  

€ million

  

%

1

Reference information was not restated; see “Changes in Accounting as a Result of the Initial Application of IFRS 16.”

2

Reference values calculated on the basis of the definition of the core business effective March 31, 2019

Core volume growth2

  

–1.0%

  

–0.2%

  

 

Sales

  

1,950

  

1,476

  

–24.3

Change in sales

  

 

  

 

  

 

Volume

  

–2.8%

  

+3.0%

  

 

Price

  

+17.3%

  

–29.4%

  

 

Currency

  

–7.4%

  

+2.1%

  

 

Portfolio

  

0.0%

  

0.0%

  

 

Sales by region

  

 

  

 

  

 

EMLA

  

860

  

669

  

–22.2

NAFTA

  

475

  

411

  

–13.5

APAC

  

615

  

396

  

–35.6

EBITDA

  

637

  

157

  

–75.4

EBIT

  

547

  

57

  

–89.6

Operating cash flows

  

176

  

4

  

–97.7

Cash outflows for additions to property, plant, equipment and intangible assets

  

46

  

102

  

>100

Free operating cash flow

  

130

  

(98)

  

.

In the first quarter of 2019, core volumes in the Polyurethanes segment remained stable compared with the prior-year quarter.

Sales in the Polyurethanes segment declined by 24.3% to €1,476 million in the first quarter of 2019 (previous year: €1,950 million). The trend in selling prices impacted sales, which fell by 29.4% chiefly due to more intense competitive pressure. In contrast, total volumes sold had a positive effect on sales, which rose by 3.0%. Furthermore, exchange rate movements resulted in a 2.1% increase in sales.

In the EMLA region, sales were down by 22.2% to €669 million (previous year: €860 million) from the prior-year quarter due to the steep decline in selling prices. Conversely, total volumes sold saw a significant increase. The effect of exchange rate movements remained neutral. Sales in the NAFTA region decreased by 13.5% to €411 million (previous year: €475 million). Much lower selling prices and a considerable drop in total volumes sold combined to negatively impact sales. In contrast, changes in exchange rates had a significantly positive effect on sales figures. The APAC region’s sales fell by 35.6% to €396 million (previous year: €615 million). Total volumes sold were substantially higher, while selling prices were down considerably. Exchange rate movements had a minor positive effect on sales.

Compared with the prior-year quarter, the Polyurethanes segment’s EBITDA slid by 75.4% to €157 million in the first quarter of 2019 (previous year: €637 million). Greater competitive pressure led to a significant drop in margins, whereas volumes had a positive effect on EBITDA.

EBIT was down by 89.6% in the same period, dropping to €57 million (previous year: €547 million).

In the first quarter of 2019, free operating cash flow amounted to minus €98 million, down from the prior-year figure of €130 million. The main reasons for this development are the decline in EBITDA and greater cash outflows for property, plant and equipment, which stood in contrast to overall lower funds tied up in working capital.