Another strong quarter with volume growth helped to propel strong EBITDA growth and record margins. Cash generation is sustained, with free cash flow from continuing operations at €85 million. We delivered improvement across all regions and all our segments.
Q2 2017 Underlying results
Q2 2017 underlying EBITDA by segment
Underlying EBITDA grew 22% to €356 million, with strong demand for high-performance polymers for car engines, a recovery of smart device market and positive growth of composites sales driven by the production ramp-up of the F-35 for military and the LEAP engine used in new single-aisle aircrafts.
Underlying EBITDA is established at €130 million, up 5% year on year, based on volume growth and the recovery in the North American oil & gas market. Higher raw material and fixed costs were partly offset by operational excellence initiatives.
Underlying EBITDA rose a modest 1%, to €190 million. The supply contract for the new HPPO plant in Saudi Arabia offset one-time asset optimization in 2016. A relentless focus on cost optimization through operational excellence initiatives offset higher energy and raw material costs, as well as higher fixed costs.
Underlying EBITDA was €82 million, up 57%, reflecting the volume increase and especially strong net pricing. Volume growth in automotive applications continued for polyamide 6.6 intermediates, polymers and engineering plastics.