Management Report & Annexes | Report on Economic Position

15.3 MaterialScience

Key Data – MaterialScience[Table 3.15.8]
  4th
Quarter
2013
4th
Quarter
2014
Change Full
Year
2013
Full
Year
2014
Change
  € million € million % Fx (& p) adj. % € million € million % Fx (& p) adj. %
Sales 2,691 2,948 +9.6 +5.5 11,238 11,651 +3.7 +4.8
Change in sales                
Volume +4.1% +5.7%     +0.6% +6.3%    
Price -2.5% -0.2%     -0.2% -1.5%    
Currency -3.6% +4.1%     -2.4% -0.8%    
Portfolio -0.5% 0.0%     -0.2% -0.3%    
Sales                
Polyurethanes 1,472 1,591 +8.1 +4.4 6,054 6,285 +3.8 +4.9
Polycarbonates 640 741 +15.8 +10.3 2,640 2,820 +6.8 +7.2
Coatings, Adhesives, Specialties 417 460 +10.3 +6.7 1,863 1,915 +2.8 +5.5
Industrial Operations 162 156 -3.7 -6.2 681 631 -7.3 -7.2
Sales by region                
Europe 1,040 1,036 -0.4 -0.1 4,363 4,441 +1.8 +1.9
North America 561 673 +20.0 +10.3 2,424 2,593 +7.0 +7.1
Asia/Pacific 762 885 +16.1 +8.5 3,048 3,245 +6.5 +7.4
Latin America/Africa/Middle East 328 354 +7.9 +7.9 1,403 1,372 -2.2 +1.4
EBIT 70 43 -38.6   435 555 +27.6  
Special items (18) (22)   6 (43)  
EBIT before special items1 88 65 -26.1 429 598 +39.4
EBITDA1 244 196 -19.7 1,101 1,149 +4.4
Special items (4) (21)   29 (38)  
EBITDA before special items1 248 217 -12.5 1,072 1,187 +10.7
EBITDA margin before special items1 9.2% 7.4%     9.5% 10.2%    
Gross cash flow2 217 201 -7.4 887 961 +8.3
Net cash flow2 545 517 -5.1   977 880 -9.9  
Fx (& p) adj. = currency- (and portfolio-)adjusted (Fx & p adj.: Sales; Fx adj.: Sales by region)

1 For definition see Chapter 16.2 “Calculation of EBIT(DA) Before Special Items.”

2 For definition see Chapter 16.5 “Liquidity and Capital Expenditures of the Bayer Group.”

Sales of the MaterialScience subgroup advanced in 2014 by 4.8% (Fx & portfolio adj.) to €11,651 million (reported: +3.7%). This growth was due to higher volumes for Polycarbonates; Polyurethanes; and Coatings, Adhesives, Specialties. Volumes increased in Europe, North America and Asia/Pacific, while in Latin America/Africa/Middle East they were flat with the previous year. However, selling prices showed a slight decline.

MaterialScience Quarterly Sales

The Polyurethanes business unit raised sales by 4.9% (Fx & portfolio adj.) to €6,285 million. This increase was driven by higher volumes in all regions that in turn were attributable to improved demand in nearly all the main customer industries. Selling prices overall were below the prior-year level. Volumes of diphenylmethane diisocyanate (mdi) and toluene diisocyanate (tdi) improved, while selling prices receded. This led to an increase in overall sales of mdi and a decrease in sales of tdi. Both volumes and selling prices for polyether (pet) increased.

Sales of the Polycarbonates business unit increased by 7.2% (Fx & portfolio adj.) to €2,820 million, with volumes up in all regions except Latin America/Africa/Middle East. This was mainly attributable to improved demand from customers in the automotive, electrical/electronics and construction industries. Selling prices were down overall compared with the prior year.

Sales in the Coatings, Adhesives, Specialties business unit moved forward by 5.5% (Fx & portfolio adj.) to €1,915 million, the increase resulting from higher volumes in all regions. Selling prices were level year on year.

Sales of Industrial Operations receded by 7.2% (Fx & portfolio adj.) to €631 million due to lower selling prices and volumes overall.

ebit of MaterialScience advanced by 27.6% to €555 million in 2014 (2013: €435 million), reflecting special charges of €43 million for restructuring (2013: special gains of €6 million). ebit before special items improved by a clear 39.4% to €598 million. ebitda before special items rose by 10.7% to €1,187 million. This was particularly due to higher volumes, efficiency improvement measures and lower raw material and energy costs. However, earnings were held back by lower selling prices. Currency effects as a whole were neutral to earnings.

Last updated: February 26, 2015  Copyright © Bayer AG
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