29.10.2015, 00:18
BASF Announces Fiscal 2015 Third Quarter Results
OREANDA-NEWS. In a weaker than expected market environment, BASF sales in the third quarter of 2015 were EUR 17.4 billion, 5% below the level of the previous third quarter. EBITDA increased by EUR 358 million to EUR 2.9 billion, mainly due to higher depreciation. In contrast, income from operations (EBIT) before special items declined by EUR 171 million to EUR 1.6 billion. In the Chemicals segment, EBIT before special items rose slightly, while it increased sharply in the Functional Materials & Solutions segment. In the remaining segments, earnings declined significantly.
"We experienced a pronounced summer lull and no volume momentum in September. Major markets like Brazil are in a recession or face lower growth rates, such as China," said Dr. Kurt Bock, Chairman of the Board of Executive Directors of BASF SE.
The sharp drop in the price of oil led to lower prices (minus 8%), primarily in the Chemicals and Oil & Gas segments. Sales volumes were slightly lower (minus 1%) than in the previous third quarter. Volumes in the chemicals business, which comprises the Chemicals, Performance Products and Functional Materials & Solutions segments, were below the level of the prior-year quarter, but they rose in the Agricultural Solutions and Oil & Gas segments. Currency effects were positive (plus 4%) in every division except Crop Protection.
Special items in EBIT totaled EUR 286 million in the third quarter of 2015, compared with minus EUR 32 million in the third quarter of 2014. This was particularly the result of gains from the asset swap with Gazprom concluded at the end of September 2015. Compared with the previous third quarter, EBIT grew by EUR 147 million to EUR 1.9 billion. Net income rose by EUR 195 million to EUR 1.2 billion. Earnings per share were EUR 1.31 in the third quarter of 2015, compared with EUR 1.11 in the same quarter of 2014.
In the first nine months of 2015, sales of BASF Group were around EUR 56.6 billion, 1% higher than in the same period of the previous year. EBIT before special items declined by EUR 182 million to EUR 5.7 billion. At EUR 5.9 billion, EBIT in the first nine months of 2015 reached the same level as in the same period of the previous year.
Cash provided by operating activities in the three quarters of 2015 rose year-on-year by EUR 3.6 billion to EUR 8.5 billion. This was predominantly the result of a decline in inventories.
"We experienced a pronounced summer lull and no volume momentum in September. Major markets like Brazil are in a recession or face lower growth rates, such as China," said Dr. Kurt Bock, Chairman of the Board of Executive Directors of BASF SE.
The sharp drop in the price of oil led to lower prices (minus 8%), primarily in the Chemicals and Oil & Gas segments. Sales volumes were slightly lower (minus 1%) than in the previous third quarter. Volumes in the chemicals business, which comprises the Chemicals, Performance Products and Functional Materials & Solutions segments, were below the level of the prior-year quarter, but they rose in the Agricultural Solutions and Oil & Gas segments. Currency effects were positive (plus 4%) in every division except Crop Protection.
Special items in EBIT totaled EUR 286 million in the third quarter of 2015, compared with minus EUR 32 million in the third quarter of 2014. This was particularly the result of gains from the asset swap with Gazprom concluded at the end of September 2015. Compared with the previous third quarter, EBIT grew by EUR 147 million to EUR 1.9 billion. Net income rose by EUR 195 million to EUR 1.2 billion. Earnings per share were EUR 1.31 in the third quarter of 2015, compared with EUR 1.11 in the same quarter of 2014.
In the first nine months of 2015, sales of BASF Group were around EUR 56.6 billion, 1% higher than in the same period of the previous year. EBIT before special items declined by EUR 182 million to EUR 5.7 billion. At EUR 5.9 billion, EBIT in the first nine months of 2015 reached the same level as in the same period of the previous year.
Cash provided by operating activities in the three quarters of 2015 rose year-on-year by EUR 3.6 billion to EUR 8.5 billion. This was predominantly the result of a decline in inventories.
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