Overview
Performance by Subgroup, Segment and Region
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3.3 Bayer MaterialScience
| Key Data – MaterialScience | [Table 3.13] | ||
|---|---|---|---|
| 2008 | 2009 | Change | |
| € million | € million | % | |
| Sales | 9,738 | 7,520 | -22.8 |
| Polyurethanes | 5,069 | 3,783 | -25.4 |
| Polycarbonates | 2,372 | 1,873 | -21.0 |
| Coatings, Adhesives, Specialties | 1,648 | 1,364 | -17.2 |
| Industrial Operations | 649 | 500 | -23.0 |
| Sales by Region | |||
| Europe | 4,267 | 3,054 | -28.4 |
| North America | 2,108 | 1,536 | -27.1 |
| Asia/Pacific | 2,098 | 1,951 | -7.0 |
| Latin America/Africa/Middle East | 1,265 | 979 | -22.6 |
| EBITDA* | 1,041 | 341 | -67.2 |
| Special items | (47) | (105) | |
| EBITDA before special items* | 1,088 | 446 | -59.0 |
| EBITDA margin before special items* | 11.2% | 5.9% | |
| EBIT* | 537 | (266) | . |
| Special items | (49) | (140) | |
| EBIT before special items* | 586 | (126) | . |
| Gross cash flow** | 850 | 319 | -62.5 |
| Net cash flow** | 782 | 849 | +8.6 |
* for definition see “Calculation of EBIT(DA) Before Special Items” ** for definition see “Liquidity and Capital Expenditures of the Bayer Group” | |||
The business performance of MaterialScience in 2009 was impacted by the effects of the global financial and economic crisis. The subgroup saw a dramatic decline in sales worldwide at the beginning of the year, but business recovered markedly over the course of 2009. Sales of our MaterialScience business fell by 22.8% in 2009 to €7,520 million (2008: €9,738 million). The currency- and portfolio-adjusted decrease was 24.7%. Lower selling prices accounted for 12.3 percentage points of this decrease and lower volumes for 12.4 percentage points.
Sales of our Polyurethanes business unit fell by 25.4% to €3,783 million (2008: €5,069 million). Adjusted for currency and portfolio effects, sales dropped by 27.4%. This decline affected all polyurethane product groups (diphenylmethane diisocyanate (
MDI), toluene diisocyanate (TDI) and polyether) and was attributable to both lower selling prices and lower volumes. By contrast, we achieved a gratifying expansion in volumes in the Asia/Pacific region.
MDI), toluene diisocyanate (TDI) and polyether) and was attributable to both lower selling prices and lower volumes. By contrast, we achieved a gratifying expansion in volumes in the Asia/Pacific region. Our Polycarbonates business unit saw sales fall by 21.0% year on year (Fx adj. -22.8%) to €1,873 million (2008 : €2,372 million). Volumes receded overall, but were up slightly in the Asia/Pacific region. Sales of our granules business fell due to both lower selling prices and lower volumes. Selling prices held steady in our semi-finished products (polycarbonate sheet) business, while volumes were down.
Sales of the Coatings, Adhesives, Specialties business unit dropped by 17.2% to €1,364 million (2008: €1,648 million). The currency- and portfolio-adjusted decline was 19.5%. This was primarily due to receding volumes in all product groups and regions, as well as to a slight decrease in selling prices.
Industrial Operations had sales of €500 million, down 23.0% (Fx adj. -23.6%) against the prior-year level of €649 million. In Europe, selling prices rose slightly but volumes declined significantly. In the United States we did not match the very high sales level of the previous year, mainly because of lower selling prices.
Earnings of MaterialScience dropped sharply in 2009. After a very weak first quarter, however, there was a successive, significant improvement in the earnings situation over the course of the year. EBITDA before special items in 2009 dropped to €446 million (2008: €1,088 million). The EBITDA margin before special items fell to 5.9%. This was due to lower selling prices and volumes. By contrast, earnings were increased by lower raw material and energy costs, as well as by savings from our restructuring program. In addition, we reacted to the weak business environment with further cost-containment measures.
EBIT before special items was minus €126 million (2008: plus €586 million). Also contributing to this decline was higher depreciation due to the commissioning of facilities at the Shanghai site in the fourth quarter of the previous year. Special charges in 2009 of €140 million (2008: €49 million) mainly related to the restructuring program initiated in 2007. Earnings were also diminished by additional funding for the German corporate pension assurance association. EBIT came in at minus €266 million (2008: plus €537 million).
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