Despite Declining Demand, BASF Increases Sales and Earnings in the Third Quarter of 2014 - Seite 4

Sales reached the level of the previous third quarter in the Performance Products segment. Volumes and sales prices remained stable while currency effects were negative. Volumes increased significantly in the Performance Chemicals division. In the Paper Chemicals division, however, lower volumes led to a considerable decline in sales. Fixed costs were reduced, thanks in part to restructuring measures. Earnings of EUR 376 million matched the level of the previous third quarter.

In the Functional Materials & Solutions segment, sales exceeded the level of the third quarter of 2013 by 2 percent. Prices could be raised in most business areas, more than compensating for negative currency effects. Demand remained strong from the automotive industry, especially in the Catalysts division. Earnings increased by EUR 10 million to EUR 310 million, mostly through considerably higher contributions from the Coatings and Catalysts divisions.

In the Agricultural Solutions segment, sales were 3 percent below the level of the third quarter of 2013. Continuously falling crop commodity prices and correspondingly cautious purchasing behavior were noticeable in nearly every market. Price increases in all regions were unable to compensate for a drop in sales volumes. Earnings -- in a generally seasonally weak quarter -- fell by EUR 129 million to EUR 43 million. In addition to lower volumes, this was largely a result of weaker margins due to a less favorable product mix as well as increased expenses for research and development, production, and distribution.

Sales in the Oil & Gas segment grew by 17 percent compared with the previous third quarter. This was primarily attributable to sharply increased volumes in the Natural Gas Trading business sector. Sales growth was slowed by lower oil and gas prices. Earnings rose by EUR 82 million to EUR 504 million thanks to a higher contribution from the Natural Gas Trading business sector.

Sales rose by 3 percent in Other, mainly through increased raw materials trading. EBIT before special items improved by EUR 98 million to minus EUR 7 million. Valuation effects for the long-term incentive program played a significant role here; the foreign currency result also improved.

Business development in the regions in the third quarter

Sales at companies located in Europe grew by 3 percent compared with the previous third quarter. This was mainly because of the considerably higher volumes in the Natural Gas Trading business sector; sales volumes in the Chemicals and Agricultural Solutions segments declined. Sales and volumes increased considerably in the Catalysts division. In the Petrochemicals division, lower plant availability dampened sales. EBIT before special items rose by EUR 202 million to EUR 1.1 billion, primarily due to considerably improved contributions from Chemicals, Oil & Gas, and Other.