Solutions & Specialties
| Solutions & Specialties key data | ||||||
|---|---|---|---|---|---|---|
| 3rd quarter 2023 | 3rd quarter 2024 | Change | 1st nine months 2023 |
1st nine months 2024 |
Change | |
| Sales (external) | €1,809 million | €1,773 million | –2.0% | €5,564 million | €5,350 million | –3.8% |
| Intersegment sales | €6 million | €7 million | 16.7% | €21 million | €20 million | –4.8% |
| Sales (total) | €1,815 million | €1,780 million | –1.9% | €5,585 million | €5,370 million | –3.8% |
| Change in sales (external) | ||||||
| Volume | –3.7% | 3.9% | –8.0% | 4.9% | ||
| Price | –8.9% | –4.9% | –5.3% | –7.7% | ||
| Currency | –5.0% | –1.0% | –2.2% | –1.0% | ||
| Sales by region (external) | ||||||
| EMLA | €653 million | €640 million | –2.0% | €2,144 million | €2,029 million | –5.4% |
| NA | €461 million | €434 million | –5.9% | €1,433 million | €1,335 million | –6.8% |
| APAC | €695 million | €699 million | 0.6% | €1,987 million | €1,986 million | –0.1% |
| EBITDA1 | €246 million | €208 million | –15.4% | €632 million | €590 million | –6.6% |
| EBIT1 | €178 million | €134 million | –24.7% | €390 million | €344 million | –11.8% |
| Cash flows from operating activities | €247 million | €162 million | –34.4% | €447 million | €303 million | –32.2% |
| Cash outflows for additions to property, plant, equipment and intangible assets | €62 million | €61 million | –1.6% | €160 million | €144 million | –10.0% |
| Free operating cash flow | €185 million | €101 million | –45.4% | €287 million | €159 million | –44.6% |
1 EBIT and EBITDA include the effect on earnings of intersegment sales.
In the Solutions & Specialties segment, third-quarter sales in 2024 were down 2.0% to €1,773 million (previous year: €1,809 million). This was mainly driven by a demand-induced 4.9% decline in average selling prices, which coincided with a reduction in raw material prices being passed on to customers, as well as exchange rate movements, which had a sales-reducing effect of 1.0%. This stood against a rise in volumes sold, which had an increasing effect on sales amounting to 3.9%.
The EMLA region’s sales decreased 2.0% to €640 million (previous year: €653 million), driven by significantly lower average selling prices. In contrast, higher volumes sold had the effect of increasing sales slightly. Exchange rate movements had no notable effect on sales. The NA region’s sales decreased 5.9% to €434 million (previous year: €461 million), due especially to a lower selling price level and exchange rate movements, both of which had a slight reducing effect on sales. Changes in volumes sold had no notable effect on sales. Sales in the APAC region were up by 0.6% to €699 million (previous year: €695 million), driven primarily by a significant increase in sales volumes. This effect was partially offset by lower average selling prices, which had a slight sales-reducing impact. Exchange rate movements had no notable effect on sales.
In the third quarter of 2024, EBITDA in the Solutions & Specialties segment was down 15.4% on the corresponding prior-year quarter, declining to €208 million (previous year: €246 million); this was predominantly due to lower margins, since the decline in average selling prices could not be compensated for by lower raw material and energy prices. Another factor contributing to lower earnings than in the corresponding prior-year quarter was a reduced amount of business development subsidies received in China attributable to the segment. On the other hand, higher sales volumes and a change in provisions for short-term variable compensation had a beneficial effect on earnings. Exchange rate movements had no notable impact.
In the third quarter of 2024, EBIT decreased by 24.7% to €134 million (previous year: €178 million).
Free operating cash flow was down, amounting to €101 million in the third quarter of 2024 (previous year: €185 million), largely due to a higher amount of cash tied up in working capital, which compares to cash freed up in the corresponding prior-year quarter. In addition, lower EBITDA had a negative effect on free operating cash flow.