Leverkusen, Germany - Sales of polyurethane raw materials increased by 8.4 percent in the second quarter of 2011, Bayer MaterialScience said in its 28 July report.
Coatings, adhesives and specialities raised sales of raw materials by 6.3 percent, the company said.
Earnings (EBITDA) for Bayer MaterialScience as a whole were down by Euro 1 million from 2010 to Euro 372 million ($535 million).
"MaterialScience benefitted from the increase in selling prices in all business units and regions, especially in Europe and North America. By contrast, volume sales were down slightly against the prior-year level," said Bayer ceo Marijn Dekkers.
A significant expansion of volumes in Europe was not sufficient to fully compensate the declines in the Asia/Pacific and North America regions, Bayer said in the statement Volumes were level year-on-year in the Latin America/Africa/ Middle East region.
Bayer said the significant increase in raw material and energy costs was more than offset by higher selling prices. But earnings were diminished by higher costs, partly in connection with the commissioning of a TDI (toluene diisocyanate) plant in China
Sales of the Bayer Group as a whole grew by 0.8 percent in the second quarter to Euro 9252 million ($13 317 million). Earnings (EBITDA) were up 5.8 percent to Euro 2035 million. Net income grew by 40.9 percent to Euro 747 million.
"We are pleased with the way our business performed," commented Dekkers when he presented the company's interim report on Thursday. "We have also achieved significant progress with products from our research and development pipeline."
Bayer said it is optimistic for the current fiscal year and confirmed the sales and earnings forecast for 2011 that was raised in April.