Management Report
5.3 MaterialScience
| Key Data – MaterialScience | [Table 9] |
|---|
| | 2nd
Quarter
2010 | 2nd
Quarter
2011 | Change | 1st
Half
2010 | 1st
Half
2011 | Change |
|
€ million |
€ million |
% | Fx
(& p)
adj. % |
€ million |
€ million |
% | Fx
(& p)
adj. % |
| Sales | 2,689 | 2,782 | +3.5 | +8.3 | 4,905 | 5,468 | +11.5 | +13.0 |
| Change in sales | | | | | | | | |
| Volume | +32.7% | -1.0% | | | +36.8% | +3.9% | | |
| Price | +7.8% | +9.3% | | | +2.5% | +9.1% | | |
| Currency | +6.4% | -5.0% | | | +2.2% | -1.7% | | |
| Portfolio | 0.0% | +0.2% | | | 0.0% | +0.2% | | |
| Sales by business unit | | | | | | | | |
| Polyurethanes | 1,321 | 1,374 | +4.0 | +8.4 | 2,427 | 2,727 | +12.4 | +13.4 |
| Polycarbonates | 753 | 761 | +1.1 | +6.7 | 1,328 | 1,477 | +11.2 | +13.4 |
| Coatings, Adhesives, Specialties | 481 | 490 | +1.9 | +6.3 | 894 | 950 | +6.3 | +7.8 |
| Industrial Operations | 134 | 157 | +17.2 | +20.6 | 256 | 314 | +22.7 | +24.1 |
| Sales by region | | | | | | | | |
| Europe | 1,000 | 1,169 | +16.9 | +17.0 | 1,878 | 2,289 | +21.9 | +21.9 |
| North America | 575 | 537 | -6.6 | +5.2 | 1,011 | 1,048 | +3.7 | +9.7 |
| Asia/Pacific | 773 | 712 | -7.9 | -0.6 | 1,390 | 1,424 | +2.4 | +4.5 |
| Latin America/Africa/Middle East | 341 | 364 | +6.7 | +10.1 | 626 | 707 | +12.9 | +12.3 |
| EBIT | 228 | 236 | +3.5 | | 365 | 441 | +20.8 | |
| Special items | - | - | | | - | - | | |
| EBIT before special items* | 228 | 236 | +3.5 | | 365 | 441 | +20.8 | |
| EBITDA* | 373 | 372 | -0.3 | | 651 | 717 | +10.1 | |
| Special items | - | - | | | - | - | | |
| EBITDA before special items* | 373 | 372 | -0.3 | | 651 | 717 | +10.1 | |
| EBITDA margin before special items* | 13.9% | 13.4% | | | 13.3% | 13.1% | | |
| Gross cash flow** | 293 | 288 | -1.7 | | 513 | 560 | +9.2 | |
| Net cash flow** | 62 | (15) | . | | 78 | 136 | +74.4 | |
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 second quarter of 2011, the MaterialScience subgroup was able to build on its performance in the previous three months and further increase sales.
Sales of MaterialScience climbed by 8.3% (Fx & portfolio adj.) year on year to €2,782 million (reported: +3.5%). This growth was driven mainly by the increase in selling prices in all business units and regions, especially in Europe and North America. Volume sales of our products were down slightly overall against the prior-year level. A significant expansion of volumes in Europe was not sufficient to fully offset the demand-related declines in the Asia/Pacific and North America regions. Volumes were level year on year in the Latin America/Africa/Middle East region.
The Polyurethanes business unit raised sales by 8.4% (Fx & portfolio adj.) to €1,374 million. Among our polyurethane product groups, we recorded significant sales gains in diphenylmethane diisocyanate (MDI) and polyether (PET), while sales of toluene diisocyanate (TDI) were well below the previous year. The sales growth in this business unit was largely due to higher selling prices in all regions. We significantly raised the price level especially in the Europe region, and higher selling prices for MDI and PET products more than offset the decline in prices for TDI. Overall, volumes declined slightly year on year in the Polyurethanes business unit due to weaker demand for TDI and MDI. Significantly higher volumes for our polyurethane products in Europe and Latin America/Africa/Middle East were not sufficient to offset lower volumes in North America and Asia/Pacific.
Sales of the Polycarbonates business unit increased to €761 million, up 6.7% (Fx & portfolio adj.) against the prior-year figure. Instrumental in this growth was the considerable increase in sales of our granules product group largely on account of higher selling prices worldwide. Here we implemented double-digit price increase rates in the Europe and North America regions. By contrast, volumes were down overall against the strong prior-year quarter. The marked decline in the Asia/Pacific and Latin America/Africa/Middle East regions was partially compensated by a moderate increase in volumes in North America and Europe. Polycarbonate sheet/semi-finished products saw a year-on-year decline in sales, as higher selling prices only partly offset the lower volumes in all relevant regions.
The Coatings, Adhesives, Specialties business unit posted sales of €490 million, which was 6.3% (Fx & portfolio adj.) more than in the prior-year period. Contributing to this performance were above all substantial price increases in all regions worldwide and in all product groups – including particularly coating resins. Volumes were level year on year, with expansions in Europe and North America and declines in the Latin America/Africa/Middle East and Asia/Pacific regions.
Sales of Industrial Operations grew by 20.6% (Fx & portfolio adj.) to €157 million. This was attributable in part to significant increases in volumes and selling prices in all regions.
EBIT of MaterialScience in the second quarter of 2011 was €236 million (+3.5%). Earnings were not affected by special charges in this period. EBITDA before special items came in level year on year at €372 million. Through higher selling prices, we more than offset the significant increase in raw material and energy costs driven by the economic situation. Earnings were diminished by higher costs, partly in connection with the commissioning of our TDI train in China, and by negative currency effects.
First-half sales of the MaterialScience subgroup rose by 13.0% (Fx & portfolio adj.) to €5,468 million. This pleasing growth was driven by the greatly improved price level in all business units and regions, as well as by the expansion of volumes in the Europe, Latin America/Africa/Middle East and North America regions. EBIT rose by a significant 20.8% to €441 million. EBITDA before special items climbed substantially to €717 million.