Materials

Q3 2021

In the Materials segment, sales in both divisions increased considerably compared with the prior-year quarter.

Factors influencing sales in Q3 2021 – Materials

 

Materials

Performance Materials

Monomers

Volumes

7%

10%

3%

Prices

41%

22%

63%

Portfolio

0%

0%

0%

Currencies

2%

1%

2%

Sales

50%

33%

68%

Sales growth was due mainly to significantly higher prices resulting from strong demand alongside low product availability and increased prices for raw materials. Production and supply chain disruptions associated with hurricanes in the United States and raw material shortages negatively impacted product market availability. The Monomers division achieved higher prices primarily in isocyanates and polyamides, while Performance Materials raised price levels mainly in polyurethane systems and engineering plastics.

A considerable increase in volumes due largely to strong demand contributed to sales growth. A primary driver was the higher volumes in the Performance Materials division, due mainly to increased sales volumes in the transportation and consumer goods industries. Monomers recorded volumes growth particularly in the isocyanates business.

Positive currency effects, especially in Asia Pacific, supported sales slightly.

Income from operations (EBIT) before special items rose considerably compared with the third quarter of 2020. This was driven largely by significantly higher EBIT before special items in Monomers. Earnings growth was primarily due to higher margins in isocyanates and polyamides. The Performance Materials division also significantly increased EBIT before special items. This was mainly driven by positive volume development.

The decline in special items in the third quarter of 2021 was due primarily to the special charges for impairments in the prior-year quarter.

Segment data – Materials (Million €)

 

Q3

January–September

 

2021

2020

+/–

2021

2020

+/–

Sales to third parties

3,973

2,657

50%

11,163

7,674

45%

of which Performance Materials

1,873

1,410

33%

5,417

4,012

35%

Monomers

2,100

1,247

68%

5,746

3,662

57%

Income from operations before depreciation, amortization and special items

832

439

90%

2,680

1,001

168%

Income from operations before depreciation and amortization (EBITDA)

822

430

91%

2,636

889

197%

Depreciation and amortizationa

202

976

–79%

606

1,418

–57%

Income from operations (EBIT)

620

–546

.

2,030

–529

.

Special items

–11

–763

99%

–65

–875

93%

EBIT before special items

631

217

191%

2,095

346

.

Assets (September 30)

10,620

9,007

18%

10,620

9,007

18%

Investments including acquisitionsb

166

135

23%

421

1,641

–74%

Research and development expenses

48

47

2%

142

133

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