Conforce International Inc. (fka CFRI)

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Difficult market environment for Bayer MaterialScience

Sales in our high-tech polymer materials business (MaterialScience) receded by 2.2 percent to EUR 11,238 million (2012: EUR 11,491 million), matching the prior-year level (plus 0.4 percent) on a currency- and portfolio-adjusted basis. "MaterialScience faced considerable challenges in 2013, in what remained a difficult market environment. Both volumes and prices were virtually unchanged compared with the prior year," Dekkers remarked.

Business with foam raw materials (Polyurethanes) rose by 3.9 percent (Fx & portfolio adj.). Volume gains in Asia/Pacific and North America contributed to this increase. Selling prices as a whole were at the prior-year level. Sales of high-tech plastics (Polycarbonates) receded by 4.5 percent (Fx & portfolio adj.), 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 of raw materials for coatings, adhesives and specialties fell by 1.9 percent (Fx & portfolio adj.), largely as a result of lower selling prices in Asia/Pacific. Volumes as a whole were flat with the prior year.

EBITDA before special items of the subgroup dropped by 15.1 percent to EUR 1,072 million (2012: EUR 1,263 million), mainly due to higher raw material costs. "Despite the difficult market environment for MaterialScience in 2013, we are cautiously optimistic about the future," said Dekkers. The expected increase in capacity utilization in the industry in the coming years should relieve the pressure on prices