Materials

Q3 2019

Sales in the Materials segment declined considerably compared with the third quarter of 2018, both in the Monomers division and in the Performance Materials division.

Sales development was mainly driven by lower prices in both divisions, but especially in the Monomers division from lower isocyanate prices as a result of higher market supply. In the Performance Materials division, sales were also reduced by significantly lower prices for polyurethane systems due to the decrease in raw materials prices. Volumes in the Materials segment were on a level with the prior-year quarter. Slightly higher isocyanate volumes in the Monomers division almost completely offset the slightly lower sales volumes in the Performance Materials division. This was largely due to the continued weak demand for engineering plastics in the automotive industry in Europe and Asia. Currency effects had a slightly positive impact in both divisions.

Income from operations (EBIT) before special items was considerably below the level of the prior-year quarter. In the Monomers division, this was attributable to lower isocyanate margins and higher fixed costs, mainly due to the insurance payments received in the prior-year quarter. EBIT before special items in the Performance Materials division also declined considerably year on year as a result of lower margins and volumes.