BASF generated sales of €59.3 billion in the 2019 business year; the slight decline in sales compared with the previous year resulted from lower volumes and prices. Income from operations (EBIT) before special items was €4.5 billion, down by €1.7 billion from the prior-year level as a result of lower contributions from the Materials and Chemicals segments.
“Our company performed well, even in difficult times. 2019 was a challenging year with strong global economic headwinds,” said BASF’s Chairman of the Board of Executive Directors, Dr. Martin Brudermüller, who presented the 2019 financial figures together with Chief Financial Officer Dr. Hans-Ulrich Engel. The trade conflicts between the United States and China had a negative impact. Key sales markets developed more slowly. This was intensified by the uncertainties related to Brexit. Growth in industrial and chemical production was significantly slower than expected. Demand from many key customer industries, especially from the automotive sector, declined considerably.
“We increased our earnings in all downstream segments despite the difficult market environment. Unfortunately, this could not offset the decline in the basic chemicals business,” said Brudermüller. EBIT before special items in the Materials and Chemicals segments fell by €2.2 billion to €1.8 billion. The sharp drop in isocyanate prices, lower cracker margins, the scheduled cracker turnarounds and overall weaker demand had a significant negative impact here.
By contrast, in the downstream segments, BASF saw a considerable year-on-year improvement: The Industrial Solutions segment increased EBIT before special items considerably in both divisions, primarily due to lower fixed costs, positive currency effects and higher margins. The Surface Technologies segment likewise saw a considerable improvement in EBIT before special items. In the Nutrition & Care segment, EBIT before special items increased slightly due to a considerable improvement in the contribution from the Care Chemicals division. The Agricultural Solutions segment significantly increased EBIT before special items. “The assets and businesses acquired from Bayer performed very well. They contributed significantly to the increase in sales and earnings,” said Brudermüller.
In 2019, BASF Group’s EBIT declined from €6.0 billion to €4.1 billion. EBITDA before special items decreased by 11 percent compared with 2018 to €8.2 billion. EBITDA amounted to €8.0 billion, compared with €9.0 billion in 2018. Net income rose to €8.4 billion from €4.7 billion in the previous year. This contained a book gain of around €5.7 billion resulting from the deconsolidation of Wintershall following the merger with DEA.
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SOURCE: BASF
