Materials

Q3 2022

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

The positive sales development was mainly driven by significantly higher prices resulting from increased raw materials and energy prices and logistics costs. Monomers raised prices in all value chains, especially for polyamides and ammonia. The Performance Materials division achieved higher prices, particularly for polyurethane systems and Ultramid, mainly in Europe and North America, and for thermoplastic polyurethane in Europe.

Sales growth was supported by currency effects, primarily from the U.S. dollar and the Chinese renminbi.

This was partially offset by lower sales volumes. The Monomers division recorded a considerable decline in volumes in most value chains and regions. Higher volumes for polyamides in North America were unable to compensate for this. Sales volumes in the Performance Materials division were close to the level of the prior-year quarter. Stronger demand in North America almost completely compensated for lower sales volumes in Europe.

Income from operations (EBIT) before special items in both operating divisions declined considerably compared with the third quarter of 2021. In the Monomers division, the earnings decrease was primarily attributable to higher prices for raw materials and energy, higher fixed costs and lower sales volumes. Higher fixed costs were the main driver behind the decline in EBIT before special items in the Performance Materials division. These were primarily due to currency effects and higher production costs amid lower plant capacity utilization.