Leverkusen, Germany - Bayer MaterialScience has reported a "severe drop" in sales for the first quarter of 2009, of 34.9 percent, to Euro 1636 million ($2170 million) (Q1 2008: Euro 2512 million). Bayer AG's results statement said that the global economic crisis led to considerably weaker demand in customer industries.
"The MaterialScience subgroup experienced a steep fall in volumes, with pressure on prices increasing at the same time. Nearly all product groups at MaterialScience were impacted by this trend in all regional markets," commented Bayer chairman Werner Wenning. "This is an unprecedented development for Bayer."
Bayer's business in polyurethanes in Q1 fell 39.3 percent, sales of polycarbonates fell by 41.7 percent and sales of raw materials for coatings, adhesives and specialties dropped by 40.8 percent.
The drop in sales and prices was accompanied by significantly lower capacity utilisation at BMS' production facilities, causing EBITDA before special items to slump to - Euro 116 million (Q1 2008: plus Euro 407 million).