Materials

Q1 2020

In the Materials segment, sales declined slightly in both divisions.

The sales decrease was primarily attributable to significantly lower prices, especially in the Monomers division. Here, isocyanate prices continued to decline as a result of higher market supply. Price levels for polyamide precursors were also lower due to weaker demand from key industries. Sales in the Performance Materials division were reduced by lower prices for polyurethane systems and Ultramid due to the decrease in raw materials prices.

Volumes also declined slightly in both divisions. Weak demand as a consequence of the corona pandemic led to lower sales volumes in the Monomers division, especially of isocyanates. In the Performance Materials division, higher volumes of thermoplastic polyurethanes, biopolymers and Ultradur were unable to fully offset lower volumes of Cellasto and polyurethane systems.

Portfolio effects from the acquisition of the integrated polyamide business from Solvay, particularly in the Monomers division, had an offsetting impact.

Income from operations (EBIT) before special items declined considerably compared with the first quarter of 2019. This was attributable to the considerable decrease in EBIT before special items in the Monomers division, mainly from lower margins for isocyanates and polyamide precursors as well as higher fixed costs.

By contrast, the Performance Materials division recorded considerable growth in EBIT before special items, primarily due to higher margins as a result of lower raw materials prices and a favorable product mix.

EBIT included special items from the integration of the polyamide business acquired from Solvay.