Management Report
5.3 MaterialScience
| Key Data – MaterialScience | [Table 9] |
|---|
| | 3rd Quarter
2010 | 3rd Quarter
2011 | Change | First Nine
Months 2010 | First Nine
Months 2011 | Change |
|
€ million |
€ million |
% | Fx (& p)
adj.
% |
€ million |
€ million |
% | Fx (& p)
adj.
% |
| Sales | 2,665 | 2,768 | +3.9 | +7.4 | 7,570 | 8,236 | +8.8 | +11.0 |
| Change in sales | | | | | | | | |
| Volume | +12.7% | +0.3% | | | +27.8% | +2.6% | | |
| Price | +10.3% | +7.1% | | | +5.4% | +8.4% | | |
| Currency | +7.8% | -3.7% | | | +4.3% | -2.4% | | |
| Portfolio | 0.0% | +0.2% | | | 0.0% | +0.2% | | |
| Sales by business unit | | | | | | | | |
| Polyurethanes | 1,321 | 1,371 | +3.8 | +7.1 | 3,748 | 4,094 | +9.2 | +11.2 |
| Polycarbonates | 726 | 749 | +3.2 | +7.4 | 2,054 | 2,226 | +8.4 | +11.3 |
| Coatings, Adhesives, Specialties | 475 | 475 | 0.0 | +3.2 | 1,369 | 1,425 | +4.1 | +6.2 |
| Industrial Operations | 143 | 173 | +21.0 | +23.8 | 399 | 491 | +23.1 | +25.1 |
| Sales by region | | | | | | | | |
| Europe | 1,046 | 1,120 | +7.1 | +7.3 | 2,924 | 3,409 | +16.6 | +16.6 |
| North America | 540 | 542 | +0.4 | +9.4 | 1,551 | 1,590 | +2.5 | +9.6 |
| Asia/Pacific | 754 | 743 | -1.5 | +3.6 | 2,144 | 2,167 | +1.1 | +4.2 |
| Latin America/Africa/Middle East | 325 | 363 | +11.7 | +14.8 | 951 | 1,070 | +12.5 | +13.2 |
| EBIT | 259 | 196 | -24.3 | | 624 | 637 | +2.1 | |
| Special items | - | - | | | - | - | | |
| EBIT before special items* | 259 | 196 | -24.3 | | 624 | 637 | +2.1 | |
| EBITDA* | 408 | 348 | -14.7 | | 1,059 | 1,065 | +0.6 | |
| Special items | - | - | | | - | - | | |
| EBITDA before special items* | 408 | 348 | -14.7 | | 1,059 | 1,065 | +0.6 | |
| EBITDA margin before special items* | 15.3% | 12.6% | | | 14.0% | 12.9% | | |
| Gross cash flow** | 296 | 258 | -12.8 | | 809 | 818 | +1.1 | |
| Net cash flow** | 254 | 129 | -49.2 | | 332 | 265 | -20.2 | |
2010 figures restated Fx (&p) adj. = currency- (and portfolio-)adjusted (Fx & p adj.: Sales and Sales by business unit; Fx adj.: Sales by region) * For definition see Chapter 6 "Calculation of EBIT(DA) Before Special Items." ** For definition see Chapter 8 "Financial Position of the Bayer Group." |
In the MaterialScience subgroup, sales grew by 7.4% (Fx & portfolio adj.) in the third quarter of 2011 to €2,768 million (reported: +3.9%). This sales growth resulted from higher selling prices in all business units and regions. Volumes as a whole were level year on year, with increases in the Latin America/Africa/Middle East and North America regions fully offsetting declines in Asia/Pacific.
The Polyurethanes business unit raised sales by 7.1% (Fx & portfolio adj.) to €1,371 million. Among our polyurethane product groups, we recorded sales gains for polyether (PET) and diphenylmethane diisocyanate (MDI), while sales of our toluene diisocyanate (TDI) product group were below the previous year. Sales growth in this business unit was attributable to price increases in all regions and in all product groups with the exception of TDI. Volumes for the business unit were down slightly against the prior-year quarter, mainly because of weaker demand for our PET and MDI products.
Sales of the Polycarbonates business unit increased to €749 million, up 7.4% (Fx & portfolio adj.) from the same period of last year. This sales growth was mainly due to significantly higher volumes in the granules product group in North America, Europe and especially Asia/Pacific. We also achieved a small global increase in selling prices.
The Coatings, Adhesives, Specialties business unit registered sales of €475 million, up 3.2% (Fx & portfolio adj.) from the prior-year period. Significantly higher selling prices worldwide, especially for coating resins, contributed to this growth. Volumes, however, were below the prior-year quarter. The increase in volumes in the North America and Latin America/Africa/Middle East regions did not fully offset the declines in Asia/Pacific and Europe.
Sales of Industrial Operations grew by 23.8% (Fx & portfolio adj.) to €173 million as a result of substantial volume gains and higher selling prices in all regions.
EBIT of MaterialScience in the third quarter of 2011 fell by 24.3% to €196 million. There were no special charges in this period. EBITDA before special items also came in below the prior-year quarter, posting a 14.7% decline to €348 million. This decline resulted mainly from higher raw material and energy costs, which we largely – but not fully – offset through selling price increases. Increases in project-related operating costs and downtime costs also had a negative impact on earnings. However, cost increases due to inflation were offset by our ongoing efficiency improvement programs.
MaterialScience sales in the first nine months of 2011 rose by 11.0% (Fx & portfolio adj.) to €8,236 million. This pleasing growth was largely attributable to improved price levels in all business units and regions. We also saw considerable volume increases in the Latin America/Africa/Middle East, Europe and North America regions. EBIT grew by 2.1% to €637 million. EBITDA before special items rose by 0.6% to €1,065 million.