Polyurethanes

In fiscal 2020, core volumes sold in Polyurethanes dropped by 6.1% from the prior-year period. This is mainly due to lower core volumes sold in the furniture and wood processing industry, the automotive and transportation industry, and the construction industry, particularly in the EMLA region. Core volumes sold were down in the first six months of the year 2020 as a result of a steep pandemic-related downturn in demand. In the second half of fiscal 2020, demand improved considerably and the competitive situation was favorable, which resulted in core volumes sold increasing over the prior-year figures.

The Polyurethanes segment’s sales were down by 13.1% to €5,021 million (previous year: €5,779 million). The lower average selling price level for the year reduced sales by 5.1%. Both prior-year effects and price volatility in the 2020 reporting year influenced the individual quarters to various degrees. In addition, the decline in total volumes sold and exchange rate movements reduced sales by 5.0% and 2.0%, respectively. The portfolio effect from the sale of the European systems house business in the fourth quarter of 2019 had a negative effect of 1.0% on sales in fiscal year 2020.

Sales in the EMLA region fell by 12.0% to €2,189 million (previous year: €2,487 million) on account of significantly lower average selling prices. Moreover, total volumes sold and exchange rate changes along with the aforementioned portfolio effect reduced sales somewhat. In the NAFTA region, sales decreased by 17.3% to €1,389 million (previous year: €1,680 million). Total volumes sold and average selling prices had a significantly adverse effect on sales. Exchange rate developments pushed sales down slightly. Sales in the APAC region dropped by 10.5% to €1,443 million (previous year: €1,612 million), with total volumes sold exerting a considerable negative effect on sales. At the same time, changes in exchange rates and a decline in the selling price level each caused sales to decline slightly.

Polyurethanes
Quarterly sales

€ million

Polyurethanes
Quarterly EBITDA

€ million

EBITDA fell by 3.5% from the prior-year period to €625 million (previous year: €648 million). The decline in total volumes sold and positive one-time effects from the previous year, including insurance reimbursements of €63 million and proceeds from divestitures amounting to €34 million, reduced earnings. In contrast, lower raw material prices more than compensated for reduced selling prices, which led to higher margins. These, along with costs lowered by cost-cutting measures, had a positive effect on EBITDA.

EBIT was down by 21.2% to €197 million (previous year: €250 million).

Free operating cash flow declined to €14 million from the previous year, a reduction of 56.3% (previous year: €32 million). Funds were freed up from working capital in the previous year but tied up in working capital in the reporting year, which had a negative effect on free operating cash flow. This was mostly balanced out by reduced cash outflows for additions to property, plant, and equipment.