The global economic recovery showered unexpected sales volume on Bayer MaterialScience’s coatings, polyurethanes and other segments in 2010, reaping triple earnings and double-digit sales for the Bayer Group business for the year.
Bayer’s high-tech materials business recovered more quickly than expected from the recession, notching a 35% increase in sales, to €10.15 million (about $14.14 million US) for 2010, the company announced.
The higher sales volumes, combined with higher selling prices and favorable exchange rates, tripled the company’s earnings before interest, taxes, depreciation and amortization (EBITDA), to €1.35 million (about $1.88 million US).
MaterialScience rebounded more
quickly from the global recession
than other Bayer Group businesses,
said Dr. Marijn Dekkers,
Management Board Chairman.
“Here we see the growth in demand from key customer industries as a major positive factor,” Dr. Marijn Dekkers, Management Board Chairman, said Monday (Feb. 28) at the Group’s global headquarters in Leverkusen, Germany.
“This applies particularly to the automotive and electrical/electronics sectors, and in some regions to the construction industry as well.”
Unlike Bayer’s CropScience and HealthCare subgroups, volumes at MaterialScience returned to pre-crisis levels in 2010, the company said. Bayer MaterialScience is one of the world’s largest polymer companies.
The Coatings, Adhesives and Specialties business unit posted sales of €1.79 million, up 31.3% (27.2% on a currency- and portfolio-adjusted basis) from 2009. Significantly higher volumes were reported in all product groups and regions, with rising demand in Asia/Pacific and Europe having a particularly positive effect.
Selling prices were low in the first quarter, but the company raised them throughout the year, restoring prices for the year as a whole to 2009 levels.
Sales of the Polyurethanes business unit advanced by 32.8% (Fx adj. +27.8%), to €5.02 million. Significantly higher volumes were reported in all product groups—diphenylmethane diisocyanate (MDI), toluene diisocyanate (TDI) and polyether—and in all regions.
The largest increases in absolute terms were registered in Europe and Asia/Pacific, where the company significantly raised selling prices. This compensated for price stagnation in Latin America/Africa/Middle East and North America.
Sales of the Polycarbonates business unit climbed by 49% (Fx adj. +42.9%) to €2.79 million, largely due to substantial volume and price increases in the granules product group. Sales of polycarbonate sheet/semi-finished products also increased.
Sales of Industrial Operations gained 9.6% (Fx adj. +7.7%) to €548 million. Significant volume increases in Europe and North America—the two primary regional markets—more than offset the drop in prices.
India Plant Opens
Bayer MaterialScience has opened a manufacturing facility for polyisocyanates at Ankleshwar, in the state of Gujarat, India. Polyisocyanates are used as raw materials for the production of polyurethane coatings and adhesives. With the €20 million investment (about $27.87 million US), the company plans to expand its business in India, where it reports strong growth in the local market for coatings and adhesives.
The initial capacity will be 15,000 tons per year, increasing as production needs dictate. Ankleshwar is one of India’s biggest chemical manufacturing centers.