Management Report

5.3 MaterialScience

Key Data – MaterialScience       [Table 11]
  1st Quarter 2014 1st Quarter 2015
Change
  € million € million % Fx & p adj. %
Sales 2,803 3,014 +7.5 -2.1
Change in sales        
Volume +7.6% +2.3%    
Price -2.8% -4.4%    
Currency -3.2% +9.6%    
Portfolio -0.6% 0.0%    
Sales        
Polyurethanes 1,510 1,551 +2.7 -6.6
Polycarbonates 659 764 +15.9 +3.9
Coatings, Adhesives, Specialties 469 534 +13.9 +4.9
Industrial Operations 165 165 0.0 -4.2
         
  € million € million % Fx adj. %
Sales by region        
Europe 1,141 1,093 -4.2 -4.0
North America 596 718 +20.5 -0.7
Asia/Pacific 736 856 +16.3 -1.6
Latin America/Africa/Middle East 330 347 +5.2 +0.9
         
EBIT 219 219 0.0  
Special items (2) (42)    
EBIT before special items1 221 261 +18.1  
EBITDA1 364 403 +10.7  
Special items (2) (21)    
EBITDA before special items1 366 424 +15.8  
EBITDA margin before special items1 13.1% 14.1%    
Gross cash flow2 285 312 +9.5  
Net cash flow2 (44) 163 .  
Fx & p adj. = currency- and portfolio-adjusted; Fx adj. = currency-adjusted
1 For definition see Chapter 6 “Calculation of EBIT(DA) Before Special Items.”
2 For definition see Chapter 8 “Financial Position of the Bayer Group.”

In the MaterialScience subgroup, sales in the first quarter of 2015 fell as expected. The decline of 2.1% (Fx & portfolio adj.) to €3,014 million (reported: +7.5%) was attributable to lower selling prices for Polyurethanes and Polycarbonates. Raw material prices were down sharply in both these business units. Volumes rose overall. This development was evident in the Europe, Asia/Pacific and North America regions, where we registered lower price levels and an increase in volumes. In the Latin America/Africa/Middle East region, on the other hand, both selling prices and volumes were level year on year.

MaterialScience Quarterly Sales

The Polyurethanes business unit saw sales fall by 6.6% (Fx & portfolio adj.) to €1,551 million. This decline resulted from lower selling prices. Volumes remained at the level of the prior-year quarter overall. Both selling prices and volumes were down for diphenylmethane diisocyanate (mdi). Volumes of polyether (pet) and toluene diisocyanate (tdi) improved, while selling prices receded.

The Polycarbonates business unit raised sales by 3.9% (Fx & portfolio adj.) to €764 million. This growth was the result of higher volumes in all regions except Latin America/Africa/Middle East. This resulted particularly from greater demand in the automotive industry. Selling prices were down overall compared with the prior-year period.

Sales in the Coatings, Adhesives, Specialties business unit moved forward by 4.9% (Fx & portfolio adj.) to €534 million. This increase resulted mainly from higher volumes in Asia/Pacific and North America. Selling prices were level with the prior-year quarter.

Sales of Industrial Operations receded by 4.2% (Fx & portfolio adj.) to €165 million due to a drop in volumes. On the other hand, selling prices were up slightly year on year.

MaterialScience Quarterly EBIT and EBITDA Before Special Items

ebit of MaterialScience in the first quarter of 2015 was level year on year at €219 million. Reflected here were net special charges of €42 million (q1 2014: €2 million) for restructuring measures, mainly attributable to the consolidation of production sites. ebit before special items climbed by 18.1% to €261 million. ebitda before special items improved by 15.8% to €424 million (q1 2014: €366 million). This increase resulted mostly from significantly lower raw material prices that more than offset the decline in selling prices. Earnings were additionally buoyed by positive currency effects of approximately €50 million.

Last updated: August 16, 2017  Copyright © Bayer AG
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