Polycarbonates
|
|
|
|
|
|
|
|||||||||||
|
3rd quarter 20181 |
3rd quarter 2019 |
Change |
1st nine months 20181 |
1st nine months 2019 |
Change |
|||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
€ million |
€ million |
% |
€ million |
€ million |
% |
|||||||||||
|
|||||||||||||||||
Core volume growth2 |
+2.6% |
+9.3% |
|
+3.5% |
+2.4% |
|
|||||||||||
Sales |
1,038 |
901 |
–13.2 |
3,127 |
2,659 |
–15.0 |
|||||||||||
Change in sales |
|
|
|
|
|
|
|||||||||||
Volume |
+5.1% |
+6.8% |
|
+3.6% |
+3.1% |
|
|||||||||||
Price |
+9.6% |
–20.7% |
|
+13.7% |
–17.4% |
|
|||||||||||
Currency |
–0.6% |
+2.0% |
|
–4.6% |
+2.1% |
|
|||||||||||
Portfolio |
–2.8% |
–1.3% |
|
–0.9% |
–2.8% |
|
|||||||||||
Sales by region |
|
|
|
|
|
|
|||||||||||
EMLA |
331 |
281 |
–15.1 |
1,046 |
876 |
–16.3 |
|||||||||||
NAFTA |
205 |
196 |
–4.4 |
617 |
574 |
–7.0 |
|||||||||||
APAC |
502 |
424 |
–15.5 |
1,464 |
1,209 |
–17.4 |
|||||||||||
EBITDA |
315 |
132 |
–58.1 |
903 |
441 |
–51.2 |
|||||||||||
EBIT |
272 |
57 |
–79.0 |
773 |
261 |
–66.2 |
|||||||||||
Operating cash flows |
185 |
178 |
–3.8 |
419 |
409 |
–2.4 |
|||||||||||
Cash outflows for additions to property, plant, equipment and intangible assets |
49 |
44 |
–10.2 |
116 |
125 |
+7.8 |
|||||||||||
Free operating cash flow |
136 |
134 |
–1.5 |
303 |
284 |
–6.3 |
|||||||||||
In the third quarter of 2019, core volumes in the Polycarbonates segment were 9.3% higher than in the prior-year quarter. The electrical and electronics industry and the construction sector were the main contributors to this growth.
Sales in the Polycarbonates segment were down 13.2% to €901 million in the third quarter of 2019 (previous year: €1,038 million). A decline in selling prices reduced sales by 20.7%, primarily because of greater competitive pressure. In contrast, total volumes and exchange rate movements accounted for 6.8% and 2.0% of sales growth, respectively. Moreover, the portfolio effect from the sale of the U.S. polycarbonate sheets business in the third quarter of 2018 had a negative effect of 1.3% on sales in the third quarter of 2019.
Sales in the EMLA region decreased by 15.1% to €281 million as a result of a considerable drop in selling prices (previous year: €331 million). In addition, total volumes had a mildly negative effect on sales. Exchange rate changes had no significant overall impact on sales figures. In the NAFTA region, sales were down 4.4% to €196 million (previous year: €205 million), due to a significant decline in average selling prices and the aforementioned portfolio effect, which had a substantially negative impact on sales. In contrast, total volumes had a significant positive effect, and exchange rate movements increased sales slightly. Sales in the APAC region declined by 15.5% to €424 million (previous year: €502 million). A lower selling price level considerably pushed down sales, whereas total volumes provided a strong boost. Changes in exchange rates had a somewhat positive effect on sales figures.
In the third quarter of 2019, EBITDA in the Polycarbonates segment decreased by 58.1% compared with the prior-year quarter, dropping to €132 million (previous year: €315 million), mostly on account of lower selling prices. The decrease in raw material prices and increase in sales volumes had a positive effect on EBITDA, however. Moreover, earnings in the previous year had been affected by non-recurring income of €36 million from the sale of the U.S. polycarbonate sheets business.
EBIT was down 79.0% to €57 million in the third quarter of 2019 (previous year: €272 million). Write-downs of assets amounting to €26 million in connection with the sale of the European polycarbonate sheets business had a negative effect on EBIT, with €21 million of those impairment charges attributable to noncurrent assets.
Free operating cash flow fell by 1.5% to €134 million in the third quarter of 2019 (previous year: €136 million). The decline in EBITDA stood in contrast to a greater release of funds in working capital, especially in inventories.