Management Report & Annexes | Report on Economic Position

15.3 MaterialScience

Key Data – MaterialScience[Table 3.15.8]
4th Quarter
2012
4th Quarter
2013
Change Full Year
2012
Full Year
2013
Change
€ million € million % Fx (& p)
adj. %
€ million € million % Fx (& p)
adj. %
Sales 2,760 2,691 -2.5 +1.6 11,491 11,238 -2.2 +0.4
Change in sales
Volume +2.6% +4.1% +2.4% +0.6%
Price +2.2% -2.5% +0.6% -0.2%
Currency +2.2% -3.6% +3.9% -2.4%
Portfolio -0.6% -0.5% -0.7% -0.2%
Sales by business unit
Polyurethanes 1,473 1,472 -0.1 +4.0 5,987 6,054 +1.1 +3.9
Polycarbonates 668 640 -4.2 -0.9 2,819 2,640 -6.3 -4.5
Coatings, Adhesives, Specialties 451 417 -7.5 -1.1 1,972 1,863 -5.5 -1.9
Industrial Operations 168 162 -3.6 -2.4 713 681 -4.5 -3.6
Sales by region  
Europe 1,027 1,040 +1.3 +1.5 4,403 4,363 -0.9 -0.8
North America 579 561 -3.1 +1.6 2,441 2,424 -0.7 +2.5
Asia/Pacific 771 762 -1.2 +5.2 3,149 3,048 -3.2 +0.9
Latin America/Africa/
Middle East
383 328 -14.4 -8.9 1,498 1,403 -6.3 -2.3
EBIT 94 70 -25.5 581 435 -25.1
Special items (1) (18) (32) 6
EBIT before special items* 95 88 -7.4 613 429 -30.0
EBITDA* 265 244 -7.9 1,236 1,101 -10.9
Special items 1 (4) (27) 29
EBITDA before special items* 264 248 -6.1 1,263 1,072 -15.1
EBITDA margin before special items* 9.6% 9.2 % 11.0% 9.5 %
Gross cash flow** 216 217 +0.5 952 887 -6.8
Net cash flow** 250 545 . 735 977 +32.9
2012 figures restated
Fx (& p) adj. = currency- (and portfolio-)adjusted (Fx & p adj.: Sales and Sales by business unit; Fx adj.: Sales by region)
* For definition see Chapter 16.2 “Calculation of EBIT(DA) Before Special Items.”
** For definition see Chapter 16.5 “Liquidity and Capital Expenditures of the Bayer Group.”

The MaterialScience subgroup posted sales of €11,238 million in 2013, matching the prior-year level on a currency- and portfolio-adjusted basis (+0.4%; reported: -2.2%). There was a slight overall improvement in volumes, with increases in Asia and North America offsetting volume declines in Latin America/Africa/Middle East and Europe. However, selling prices overall were slightly below the ­prior-year level. Higher prices in North and Latin America roughly compensated for decreases in Asia/Pacific and Europe.

Sales in the Polyurethanes business unit rose by 3.9% (Fx & portfolio adj.) to €6,054 million. Volume gains in Asia/Pacific and North America contributed to this increase. Selling prices as a whole were at the prior-year level. Prices for diphenylmethane diisocyanate (MDI) increased, with volumes unchanged from the previous year. Volumes of toluene diisocyanate (TDI) improved significantly, but prices receded. Volumes for polyether (PET) moved somewhat lower, with selling prices at the level of the prior year.

Sales of the Polycarbonates business unit receded by 4.5% (Fx & portfolio adj.) to €2,640 million. This decline was mainly due to a drop in volumes in all regions on account of weaker demand. A further factor was the lower level of selling prices in Asia/Pacific caused by market overcapacities.

Sales in the Coatings, Adhesives, Specialties business unit fell by 1.9% (Fx & portfolio adj.) to €1,863 million, largely as a result of lower selling prices in Asia/Pacific. Volumes as a whole were flat with the prior year.

Sales of Industrial Operations moved back by 3.6% (Fx & portfolio adj.) to €681 million due to lower overall price levels. Volumes, however, were unchanged.

EBIT of MaterialScience receded by 25.1% in 2013 to €435 million. This included a net special gain of €6 million (2012: special charges of €32 million), the €42 million gain from the disposal of parts of our polyester resins business being largely offset by restructuring expenses. EBIT before special items fell by a substantial 30.0% to €429 million. EBITDA before special items dropped by 15.1% to €1,072 million. This decline was mainly due to a sharp rise in raw material costs, especially in the first half of the year. Earnings were also diminished by somewhat lower selling prices. These effects were partly offset by a slight rise in volumes, savings from our efficiency improvement measures and positive currency effects of about €10 million. Successful working capital management resulted in a significant improvement in cash flow, to €977 million (2012: €735 million; +32.9%).

Last updated: February 28, 2014  Copyright © Bayer AG
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