PCC Urethane Results

Business performance by individual segment
Polyols & Derivatives

The Polyols & Derivatives segment recorded positive
business development in the first quarter of 2024. Overall, sales
volumes and revenues were somewhat weaker than anticipated in
our budget for the current fiscal year. On the earnings side, however,
both the positive prior-year figures and our expectations for the first
quarter of 2024 were exceeded at all levels.

The dominant entity in
this segment is the Polyols business unit of PCC Rokita SA, Brzeg
Dolny (Poland), with its polyether and polyester polyols. Demand for
these polyols remained robust in the first quarter, while a temporary,
force majeure-related plant shutdown at a European competitor led
to a supply shortage with respect to polyether polyols.

As a result, average selling prices showed an upward trend in the first quarter, with
a correspondingly positive impact on the sales and earnings perfor-
mance of this business unit.

At the Polish systems house PCC Prodex
Sp. z o.o., Brzeg Dolny, the production portfolio of which includes
spray foams for the insulation of roofs, the extremely encouraging
business performance of the previous quarter continued through
the first quarter of 2024.

By contrast, the portfolio companies and
business units pooled under the intermediate holding company
PCC Insulations GmbH, which are active in the field of insulation and
other building materials, ended the first quarter of 2024 with a loss,
as had been expected.

The Essen-based manufacturer of specialty
foam blocks and polishing pads, PCC Prodex GmbH (Germany), also
closed the first quarter of 2024 with a slight loss, having seen its
numbers come in slightly worse than expected. However, the out-
look for the following quarter is more optimistic due to the current
order backlog.

The ISO 9001:2015 certification awarded to PCC Pro-
dex GmbH in the first quarter of 2024 should also have a positive
impact.

The start-up PolyU GmbH, Oberhausen (Germany), which
develops specialty chemicals based on polyols, also remained slight-
ly in deficit in the first quarter of 2024. However, the losses were
much lower than expected and the current order situation also in-
dicates a continuation of this encouraging trend at the company.

PCC Synteza S.A., Kędzierzyn-Koźle (Poland), which in addition to
contract manufacturing for PolyU GmbH also continues to operate
its core business, namely the manufacture of alkylphenols, also re-
mained in the red in the first quarter of 2024 due to continuing weak
demand for these products

https://www.pcc.eu/wp-content/uploads/2024/05/PCC-Group-Quarterly-Report-1-2024.pdf