Leverkusen, Germany – The MaterialScience subgroup of Bayer achieved sales of EUR11.7bn ($13.1bn) during 2014, it was announced at the company’s financial press conference on 26 February, 2015.
Marijn Dekkers, chairman of the board of management, said 2014 sales were up 5% on 2013 due to higher volumes and a slight fall in overall selling prices.
Polyurethane sales accounted for EUR6.2bn of sales, or 54% of the MaterialScience division's overall revenue for 2014. The company's Q4 2014 sales reached EUR1.59bn, 8.1% higher than reported in Q4 2013.
The MaterialScience subgroup reported its EBITDA (earnings before interest, taxation, depreciation and amortisation) at EUR1.1bn – a 4.4% increase on the figure it reported for 2013.
In Q4 2014, the company posted an EBITDA – before special items – of EUR217m. The figure represented a fall of 17% from that of Q4 2013. Dekkers said this was the result of new plant expenses. He also said it was “quite difficult to look at the situation from one quarter to another.” In his address, board of management member Johannes Dietsch, said the lower figure was due “partly to higher production costs.”
Dekkers said Bayer was still unsure whether to IPO or spin off MaterialScience. “It depends on how the stock market behaves and its position,” said Dekkers. He also said the decision would be made in the second half of 2015.
According to the company's annual report, global development in the industries targeted by Bayer was "in 2014, slower than expected overall." A continued weakening of business in the Eurozone, Slower growth in China and other emerging economies was offset by stronger than expected growth in North America, the report added.
In the automotive industry, the company said it saw slightly slower growth overall in 2014 than during 2013. In North America and Asia, the company said there was strong demand across all vehicle segments however, Latin America - particularly Brazil and Argentina - posted considerable declines, said the Bayer report.
Construction industry in 2014, growth was greater than in 2013, characterised by sustained recovery in Western and Eastern Europe, positive development in North America and a stabilising trend in Latin America. Asia saw steady growth overall although China showed a "slight weakening." Growth of the global furniture industry improved in 2014 compared to 2013, the report stated.
XE Currency conversion: 2 March, 2015