The increase in revenues in our Polyurethanes division for the three months ended March 31, 2011 compared to the same period in 2010 was primarily due to higher sales volumes and higher average selling prices. MDI sales volumes increased across almost all sectors. MDI sales volumes increased primarily due to improved demand in the insulation and automotive sectors.
PO/MTBE sales volumes increased compared to the prior year primarily due to the 2010 planned maintenance outage at our Port Neches, TX facility. Average MDI selling prices increased in response to higher raw material costs. Average PO/MTBE selling prices increased primarily in response to higher raw material costs and industry supply constraints. The increase in Adjusted EBITDA was primarily due to the 2010 planned maintenance at our Port Neches, TX facility the impact of which was $40 million as well as higher sales volumes.
Performance Products
The increase in revenues in our Performance Products division for the three months ended March 31, 2011 compared to the same period in 2010 was due to higher average selling prices, higher sales volumes and the consolidation of the Arabian Amines Company joint venture. Average selling prices increased across all product groups primarily in response to stronger market conditions and higher raw material costs. Sales volumes increased primarily due to stronger demand.
The increase in Adjusted EBITDA was primarily due to higher contribution margins, higher sales volumes and the consolidation of the Arabian Amines Company joint venture partially offset by higher manufacturing and selling, general and administrative costs. During the three months ended March 31, 2011 and 2010 we experienced unplanned mechanical shutdowns at our Port Neches, TX facility resulting in approximately $7 million and $11 million of higher costs respectively.
Advanced Materials
The increase in revenues in our Advanced Materials division for the three months ended March 31, 2011 compared to the same period in 2010 was due to higher average selling prices and higher sales volumes. Average selling prices increased in our specialty components and base resins business primarily in response to higher raw material costs partially offset by lower average selling prices in our formulations business primarily as a result of competitive market pressure in our wind business and overall product mix.
Sales volumes increased in the Asia-Pacific and European regions while volumes decreased slightly in the Americas primarily as a result of raw material constraints for base resins. The increase in Adjusted EBITDA was primarily due to higher contribution margins and higher sales volumes partially offset by the impact of stronger major European currencies against the U.S. dollar resulting in higher manufacturing and selling, general and administrative costs.
Textile Effects
The decrease in revenues in our Textile Effects division for the three months ended March 31, 2011 compared to the same period in 2010 was due to lower sales volumes partially offset by higher average selling prices. Sales volumes decreased due to lower demand and customer manufacturing constraints.
Average selling prices increased primarily in response to higher raw material costs. The decrease in Adjusted EBITDA was primarily due to lower sales volumes and the foreign currency impact of a stronger Swiss franc against the U.S. dollar on our manufacturing and selling, general and administrative costs.
20240830145952.gif)
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "UBM China (Shanghai)")
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
