Despite Declining Demand, BASF Increases Sales and Earnings in the Third Quarter of 2014

FLORHAM PARK, NJ--(Marketwired - Oct 24, 2014) -

• Sales EUR 18.3 billion (plus 3 percent)
• EBIT before special items EUR 1.8 billion (plus 9 percent)
• Chemicals and Oil & Gas segments improve earnings
• Earnings dip in Agricultural Solutions segment
• Outlook 2014: BASF continues to strive for slight increase in EBIT before special items in challenging environment

Sales of BASF Group grew by 3 percent compared with the previous third quarter, reaching EUR 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 EUR 150 million to around EUR 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 EUR 128 million to EUR 1.8 billion compared with the third quarter of the previous year. EBITDA rose by EUR 30 million to EUR 2.5 billion. Income before taxes and minority interests increased by EUR 126 million quarter-on-quarter to EUR 1.6 billion. Because of the higher tax rate and increased minority interests, net income declined by EUR 53 million to EUR 1.0 billion. Earnings per share were EUR 1.14 in the third quarter of 2014, compared with EUR 1.20 in the same quarter of 2013. Adjusted for special items and amortization of intangible assets, earnings per share amounted to EUR 1.27, remaining at the same level as the previous third quarter (EUR 1.28).

North America

In North America, sales rose by 3 percent in both U.S. dollars and euros, compared to the third quarter of 2013. "Sales growth is mainly attributable to increases in the Chemicals segment," said Hans Engel, Chairman and CEO of BASF Corporation. At EUR 342 million, earnings decreased by EUR 13 million, due in part to a considerably lower contribution from Agricultural Solutions, versus the same period in 2013.