Performance Materials
| Performance Materials key data | ||||||
|---|---|---|---|---|---|---|
| 2nd quarter 2023 | 2nd quarter 2024 | Change | 1st half 2023 | 1st half 2024 | Change | |
| Sales (external) | €1,789 million | €1,834 million | 2.5% | €3,581 million | €3,523 million | –1.6% |
| Intersegment sales | €557 million | €571 million | 2.5% | €1,164 million | €1,127 million | –3.2% |
| Sales (total) | €2,346 million | €2,405 million | 2.5% | €4,745 million | €4,650 million | –2.0% |
| Change in sales (external) | ||||||
| Volume | –10.3% | 15.0% | –14.4% | 16.2% | ||
| Price | –15.3% | –12.0% | –11.2% | –16.7% | ||
| Currency | –1.7% | –0.5% | –0.5% | –1.1% | ||
| Sales by region (external) | ||||||
| EMLA | €813 million | €822 million | 1.1% | €1,652 million | €1,584 million | –4.1% |
| NA | €476 million | €451 million | –5.3% | €965 million | €868 million | –10.1% |
| APAC | €500 million | €561 million | 12.2% | €964 million | €1,071 million | 11.1% |
| EBITDA1 | €302 million | €196 million | –35.1% | €475 million | €299 million | –37.1% |
| EBIT1 | €158 million | €59 million | –62.7% | €187 million | €24 million | –87.2% |
| Cash flows from operating activities | €26 million | €19 million | –26.9% | €45 million | €20 million | –55.6% |
| Cash outflows for additions to property, plant, equipment and intangible assets | €103 million | €108 million | 4.9% | €179 million | €182 million | 1.7% |
| Free operating cash flow | (€77 million) | (€89 million) | 15.6% | (€134 million) | (€162 million) | 20.9% |
1 EBITDA and EBIT include the effect on earnings of intersegment sales.
Second Quarter of 2024
Compared to the corresponding prior-year quarter, sales in the Performance Materials segment went up by 2.5% to €1,834 million (previous year: €1,789 million). This was largely driven by higher volumes sold, which had an increasing effect on sales of 15.0%. This was set against a demand induced decline in average selling prices as well as lower raw material prices, which were passed on to customers; these factors had a negative effect on sales of 12.0%. At the same time, exchange rate movements also had a decreasing effect of 0.5% on sales.
In the EMLA region, sales rose by 1.1% to €822 million (previous year: €813 million). This is attributable above all to a significant increase in volumes sold, although this was largely offset by considerably lower selling price levels. Exchange rate changes had a neutral effect on sales overall. In the NA region, sales were down 5.3% to €451 million (previous year: €476 million). The main driver of this trend was a significant decrease in average selling prices, which was only partially offset by a considerable rise in volumes sold. Exchange rate movements drove up sales slightly. Sales in the APAC region were up 12.2% to €561 million (previous year: €500 million), mainly because of a rise in volumes sold, which boosted sales significantly. This contrasted with a decrease in the selling price level and exchange rate movements, both of which contributed slightly to lower sales.
In the second quarter of 2024, the Performance Materials segment’s EBITDA was down 35.1% on the prior-year quarter, dropping to €196 million (previous year: €302 million). This was mainly driven by reduced margins, as lower raw material prices offset the demand induced decline in selling prices only to some extent. In addition, exchange rate movements also weighed on earnings. This was set against higher volumes sold, which boosted earnings. Furthermore, the supplementary government subsidy of €24 million to compensate for electricity prices in Germany and lower provisions for variable compensation had a beneficial impact on earnings.
EBIT dropped by 62.7% to €59 million (previous year: €158 million).
Free operating cash flow stood at €–89 million (previous year: €–77 million). Most of the decrease in EBITDA was offset by a lower amount of cash tied up in working capital, which was achieved above all by a smaller amount of cash tied up in trade accounts payable.
First Half of 2024
Sales in the Performance Materials segment decreased by 1.6% to €3,523 million in the first half of 2024 (previous year: €3,581 million). This was to a large extent driven by a demand induced decline in average selling prices as well as to lower raw material prices being passed on to customers, which had a negative effect on sales of 16.7%. An increase in volumes sold, on the other hand, had a positive impact on sales of 16.2%. In addition, exchange rate movements had an adverse effect on sales of 1.1%.
EBITDA was down 37.1% to €299 million in the first half of 2024 (previous year: €475 million). This was mainly driven by reduced margins, as lower raw material prices offset the demand induced decline in selling prices only to some extent. Exchange rate movements were an additional negative factor weighing on earnings. This was set against higher volumes sold, which boosted earnings. Furthermore, the supplementary government subsidy to compensate for electricity prices in Germany and lower provisions for variable compensation had a beneficial impact on earnings.
EBIT dropped by 87.2% to €24 million (previous year: €187 million).
Free operating cash flow stood at €–162 million (previous year: €–134 million). The decrease in EBITDA was partially offset by a smaller amount of cash tied up in working capital.