Materials
Q1 2021
In the Materials segment, sales in both divisions were considerably higher than in the prior-year quarter.
|
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.
|
|
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% |
||||
|