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BASF increases sales but won't achieve goals for 2015 BASF zwiększył zyski mimo niskiego popytu

BASF increases sales but won't achieve goals for  2015
Sales of BASF Group grew by 3% compared with the previous third quarter, reaching €18.3 billion. A sharp rise in volumes in the Natural Gas Trading business sector was mainly responsible for this growth. Income from operations (EBIT) before special items increased by €150 million to around €1.8 billion. The primary contributors to this development were the Chemicals and Oil & Gas segments, together with Other. The increase was dampened by a considerable earnings decline in the Agricultural Solutions segment.

"The economic environment remained challenging in the third quarter of 2014. Geopolitical tensions and increasing uncertainty about the global economic development significantly dampened demand for chemical products. Nevertheless, sales and earnings of BASF Group increased in the third quarter of 2014," said Dr. Kurt Bock, Chairman of the Board of Executive Directors of BASF SE. EBIT grew by €128 million to €1.8 billion compared with the third quarter of the previous year. EBITDA rose by €30 million to €2.5 billion. Income before taxes and minority interests increased by €126 million quarter-on-quarter to €1.6 billion. Because of the higher tax rate and increased minority interests, net income declined by €53 million to €1.0 billion. Earnings per share were €1.14 in the third quarter of 2014, compared with €1.20 in the same quarter of 2013. Adjusted for special items and amortization of intangible assets, earnings per share amounted to €1.27, remaining at the same level as the previous third quarter (€1.28).

Outlook for the full year 2014

For the fourth quarter of 2014, BASF does not anticipate an upturn in demand. The company has adjusted its expectations for the global economy in 2014 as follows (previous forecast in parentheses):
  • Growth of gross domestic product: 2.3% (2.5%)
  • Growth in chemical production: 4.0% (4.4%)
  • An average exchange rate of $1.35 per euro (unchanged)
  • An average oil price (Brent) for the year of $105 per barrel ($110 per barrel)
Bock: "We assume that the environment will remain volatile and challenging. We nevertheless still aim to slightly raise our EBIT before special items for the year 2014." Sales are likely to decrease slightly as a result of the divestiture of the gas trading and storage business planned for this year in addition to negative currency effects.


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BASF

the world’s leading chemical company; the portfolio ranges from chemicals, plastics, performance products and crop protection products to oil and gas.