Performance Polymers

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Performance Polymers
 
  Q3 2013 Q3 2014 Change 9M 2013 9M 2014 Change
  € million Margin
 %
€ million Margin
 %
% € million Margin
 %
€ million Margin
 %
%
 
Sales 1,092   1,045   (4.3) 3,404   3,144   (7.6)
EBITDA pre exceptionals 84 7.7 93 8.9 10.7 290 8.5 332 10.6 14.5
EBITDA 76 7.0 88 8.4 15.8 282 8.3 315 10.0 11.7
Operating result (EBIT) pre exceptionals 21 1.9 41 3.9 95.2 102 3.0 174 5.5 70.6
Operating result (EBIT) 13 1.2 36 3.4 > 100 94 2.8 156 5.0 66.0
Cash outflows for capital expenditures 86   83   (3.5) 229   271   18.3
Depreciation and amortization 63   52   (17.5) 188   159   (15.4)
Employees as of Sep. 30
(previous year: as of Dec. 31)
5,379   5,215   (3.0) 5,379   5,215   (3.0)
  

In the third quarter too, business development in our Performance Polymers segment remained below the level of the prior-year period. Sales decreased by 4.3% year on year, to €1,045 million. Development was mainly impacted by a negative price effect of 1.6% and by 2.0% lower volumes. A slightly unfavorable currency effect and a slightly negative portfolio effect from the divestiture of the company’s interest in Perlon-Monofil GmbH, Dormagen, Germany, accounted for 0.7% of this decrease.

Nearly all business units in this segment were impacted by declining market prices and lower volumes. The Performance Butadiene Rubbers business unit registered an increase in selling prices. The Performance Butadiene Rubbers, Butyl Rubber and High Performance Materials business units saw volumes decline. In addition, the High Performance Materials business unit registered a slightly negative portfolio effect. Nearly all business units were held back to a small extent by exchange rate developments. Segment sales developed positively in the Asia-Pacific region, but declined in the other regions.

EBITDA pre exceptionals in the Performance Polymers segment advanced by €9 million in the third quarter, to €93 million. All business units except the Butyl Rubber business unit contributed to this development. A positive impact on earnings resulted especially from considerably lower manufacturing costs, which were attributable in part to lower idle capacity costs, and also from lower research and development expenses. Lower selling prices resulting from the persistently difficult competitive situation for synthetic rubbers and due to a decline in purchase prices for some raw materials had the opposite effect. In addition, the development of volumes diminished earnings at the segment level. Currency and portfolio effects had a slightly negative impact. The segment’s EBITDA margin climbed to 8.9% compared with 7.7% in the prior-year quarter. 

The exceptional charges of €5 million, which fully impacted EBITDA, mainly related to the “Let’s LANXESS again” program. In the prior-year quarter, exceptional charges mainly resulted from measures within the “Advance” program.