Performance Materials
| Performance Materials key data | |||
|---|---|---|---|
| 1st quarter 2023 | 1st quarter 2024 | Change | |
| Sales (external) | €1,792 million | €1,689 million | –5.7% |
| Intersegment sales | €607 million | €556 million | –8.4% |
| Sales (total) | €2,399 million | €2,245 million | –6.4% |
| Change in sales (external) | |||
| Volume | –18.6% | 17.3% | |
| Price | –7.1% | –21.3% | |
| Currency | 0.7% | –1.7% | |
| Sales by region (external) | |||
| EMLA | €839 million | €762 million | –9.2% |
| NA | €489 million | €417 million | –14.7% |
| APAC | €464 million | €510 million | 9.9% |
| EBITDA1 | €173 million | €103 million | –40.5% |
| EBIT1 | €29 million | (€35 million) | . |
| Cash flows from operating activities | €19 million | €1 million | –94.7% |
| Cash outflows for additions to property, plant, equipment and intangible assets | €76 million | €74 million | –2.6% |
| Free operating cash flow | (€57 million) | (€73 million) | 28.1% |
1 EBIT and EBITDA include the effect on earnings of intersegment sales.
In the Performance Materials segment, first quarter sales in 2024 were down 5.7% to €1,689 million (previous year: €1,792 million). This was primarily driven by the 21.3% decline in average selling prices, which coincided with lower raw material prices being passed on to customers. This was set against a rise in volumes sold, which had a sales-increasing effect of 17.3% and was also facilitated by higher plant availability in the EMLA region. Exchange rate movements also had a decreasing effect of 1.7% on sales.
Sales in the EMLA region were down by 9.2% from the prior-year quarter to €762 million (previous year: €839 million), driven by a significant drop in the selling price level. On the other hand, changes in volumes sold drove sales significantly upward. Exchange rates had no notable effect on sales. The NA region’s sales decreased 14.7% to €417 million (previous year: €489 million), principally because of a considerable decline in average selling prices. In contrast, higher volumes sold had the effect of increasing sales slightly. Exchange rate movements had a neutral impact on sales. Sales in the APAC region were up 9.9% to €510 million (previous year: €464 million), mainly because of a significant rise in volumes sold. Changes in exchange rates and a lower selling price level, on the other hand, both had a significant reducing impact on sales.
In the first quarter of 2024, the Performance Materials segment’s EBITDA was down 40.5% on the prior-year quarter, dropping to €103 million (previous year: €173 million). This was primarily driven by lower margins, with a decline in average selling prices being partially offset by a drop in raw material and energy prices. At the same time, higher fixed costs and exchange rate movements weighed on earnings. On the other hand, the rise in volumes sold had a beneficial effect on EBITDA.
In the first quarter of 2024, EBIT decreased to €–35 million (previous year: €29 million).
Free operating cash flow amounted to €–73 million in the first quarter of 2024 (previous year: €–57 million). The decrease in EBITDA was partially offset by a smaller amount of cash tied up in working capital than in the prior-year quarter.