Materials

Q1 2021

In the Materials segment, sales in both divisions were considerably higher than in the prior-year quarter.

Factors influencing sales in Q1 2021 – Materials

 

Materials

Performance Materials

Monomers

Volumes

9%

12%

6%

Prices

12%

4%

22%

Portfolio

3%

2%

3%

Currencies

–4%

–5%

–3%

Sales

20%

13%

28%

The sales increase was mainly attributable to significantly higher prices and volumes.

In the Monomers division, price levels rose for isocyanates in par­ticu­lar. The Performance Materials division recorded higher prices, especially for polyurethane systems, due to higher raw materials prices.

Volume growth was primarily driven by a recovery in demand. The Performance Materials division increased volumes in Asia in par­ticular. Here, the prior-year quarter was negatively impacted by a collapse in demand as a result of the pandemic, especially in China. Sales volumes also rose in Europe compared with the prior-year quarter, largely due to stronger demand from the transportation and construction industries. Volumes also rose in the Monomers division, particularly for methylene diphenyl diisocyanate (MDI). Plant shutdowns in North America due to the cold weather led to significant production outages and raw material bottlenecks, which dampened sales performance in both divisions.

Portfolio effects from the acquisition of the integrated polyamide business from Solvay, which closed as of January 31, 2020, had a positive impact on sales.

Sales performance in both divisions was weighed down by currency effects.

Income from operations (EBIT) before special items rose con­siderably. This was mainly driven by a considerably higher earnings contribution from the Monomers division due to improved iso­cya­nate margins on the back of higher prices. EBIT before special items rose slightly in the Performance Materials division. Volume growth more than offset lower margins from higher raw materials prices.

As in the prior-year quarter, EBIT included special charges from the integration of the polyamide business acquired from Solvay.

Segment data – Materials (Million €)

 

 

Q1

 

 

2021

2020

+/–

Sales to third parties

 

3,447

2,874

20%

of which Performance Materials

 

1,732

1,531

13%

Monomers

 

1,715

1,343

28%

Income from operations before depreciation, amortization and special items

 

863

415

108%

Income from operations before depreciation and amortization (EBITDA)

 

843

325

159%

EBITDA margin

%

24.5

11.3

Depreciation and amortizationa

 

195

206

–5%

Income from operations (EBIT)

 

648

119

445%

Special items

 

–24

–90

73%

EBIT before special items

 

672

209

222%

Assets (March 31)

 

9,696

10,642

–9%

Investments including acquisitionsb

 

105

1,419

–93%

Research and development expenses

 

42

45

–7%

a

Depreciation and amortization of property, plant and equipment and intangible assets (including impairments and reversals of impairments)

b

Additions to property, plant and equipment and intangible assets