Materials

Q2 2019

Sales in the Materials segment were considerably below the level of the second quarter of 2018, especially in the Monomers division. The Performance Materials division also recorded a considerable sales decrease.

Sales development was primarily driven by significantly lower isocyanate prices in the Monomers division as a result of higher market supply. Prices in the Performance Materials division declined slightly overall, especially for polyurethane systems, where price levels declined on the back of lower raw materials prices. Slightly lower volumes also dampened sales development at segment level. The significant decrease in sales volumes in the Performance Materials division was mainly due to weaker demand for engineering plastics from the automotive and industrial segments in Europe and Asia. Volumes declined slightly in the Monomers division. Currency effects had a slightly positive impact in both divisions.

Income from operations (EBIT) before special items decreased considerably compared with the prior-year quarter. This was primarily attributable to the lower isocyanate margins, which considerably reduced EBIT before special items in the Monomers division. In the Performance Materials division, EBIT before special items was slightly below the level of the prior-year quarter due to lower volumes.