Materials

Q1 2019

Sales in the Materials segment – in both the Monomers and Performance Materials divisions – declined considerably compared with the first quarter of 2018.

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Factors influencing sales in Q1 2019 – Materials

 

 

Materials

Performance Materials

Monomers

Volumes

 

(5%)

(8%)

(3%)

Prices

 

(12%)

(1%)

(22%)

Portfolio

 

0%

0%

0%

Currencies

 

2%

2%

2%

Sales

 

(15%)

(7%)

(23%)

The sales decrease was primarily due to lower isocyanates prices in the Monomers division. Sales volumes were slightly below the level of the prior-year quarter. Demand declined, especially in the Performance Materials division. In particular, demand was weaker for polyurethane systems and engineering plastics in the Asian and European automotive and consumer goods industries. In the Monomers division, higher market supply led to slightly lower sales volumes. Positive currency effects had a slight offsetting effect in both divisions.

In both divisions, income from operations (EBIT) before special items declined considerably compared with the first quarter of 2018, particularly in the Monomers division. This was mainly a result of lower isocyanates margins in the Monomers division. In the Performance Materials division, higher margins were unable to compensate for the lower volumes. In addition, fixed costs in both divisions were slightly higher than in the prior-year quarter. This development was mainly due to currency effects.

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Segment data – Materials (Million €)

 

 

Q1

 

 

2019

2018

+/–

a

Amortization of intangible assets and depreciation of property, plant and equipment (including impairments and reversals of impairments)

b

Additions to intangible assets and property, plant and equipment

Sales to third parties

 

2,931

3,460

(15%)

of which Performance Materials

 

1,547

1,657

(7%)

Monomers

 

1,384

1,803

(23%)

Income from operations before depreciation, amortization and special items

 

493

968

(49%)

Income from operations before depreciation and amortization (EBITDA)

 

491

964

(49%)

Depreciation and amortizationa

 

170

153

11%

Income from operations (EBIT)

 

321

811

(60%)

Special items

 

(2)

(5)

60%

EBIT before special items

 

323

816

(60%)

Assets (March 31)

 

9,319

9,014

3%

Investments including acquisitionsb

 

134

94

43%

Research and development expenses

 

48

46

4%