BASF Publishes 2013 Financial Results
BASF SE, Ludwigshafen, Germany, increased sales and earnings in 2013 compared with the previous year. “We achieved our goal: We sold more, worked more closely together with our customers and enhanced our portfolio,” said Dr. Kurt Bock, Chairman of the Board of Executive Directors of BASF at the Annual Press Conference in Ludwigshafen.
Sales rose by just under 3% to reach EUR 74.0 billion. A considerable, mainly volumes-driven sales increase in the Oil & Gas and Agricultural Solutions segments was largely responsible for this development. Sales slightly declined in the chemicals business, which includes the Chemicals, Performance Products and Functional Materials & Solutions segments, despite higher sales volumes. This was mainly on account of negative currency effects. EBIT before special items in 2013 rose by EUR 543 million to EUR 7.2 billion. In addition to the successful business with crop protection products and a higher contribution from the Functional Materials & Solutions segment, this increase was also due in large part to the earnings improvement in Other.
Net income amounted to EUR 4.8 billion, slightly above the previous year’s level. Earnings per share rose from EUR 5.25 to EUR 5.27. Adjusted earnings per share amounted to EUR 5.37, EUR 0.27 under the previous year. At EUR 7.9 billion, operating cash flow reached a record level.
Development of the Segments
In the Chemicals segment, sales for the full year declined by 5% compared with the previous year to EUR 17.0 billion on account of lower prices and negative currency effects. EBIT before special items rose by EUR 11 million to EUR 2.2 billion. Despite higher volumes, sales in Performance Products decreased by 1% to EUR 15.5 billion. Compared with 2012, EBIT before special items decreased by EUR 56 million to EUR 1.4 billion. Sales in the Functional Materials & Solutions segment rose by 1% to almost €17.3 billion primarily due to higher volumes. EBIT before special items of about EUR 1.1 billion was EUR 138 million above the previous year. At EUR 5.2 billion, sales in the Agricultural Solutions segment grew by 12% compared with the previous year. EBIT before special items increased by EUR 185 million to EUR 1.2 billion primarily thanks to higher volumes and prices. In the Oil & Gas segment, sales rose by 16% to around EUR 14.8 billion mainly due to increased volumes. At almost EUR 2.0 billion, EBIT before special items exceeded the previous year’s level by EUR 93 million. Net income improved by EUR 579 million to around EUR 1.8 billion. Full-year sales in Other grew by 3% to EUR 4.2 billion compared with the previous year. EBIT before special items improved to minus EUR 618 million compared with minus EUR 790 million in 2012.
Outlook for Full Year 2014
“We do not expect strong tailwinds this year either. Nevertheless, we are cautiously optimistic with regards to global economic development. The world economy is expected to grow slightly faster in 2014 than in 2013, despite continuing volatility,” said Bock. For the global chemical industry, the company anticipates growth rates comparable with the previous year’s level and forecasts somewhat higher growth in key customer industries such as the transportation, consumer goods and electronics industries.
Nonetheless, sales are likely to decline slightly compared with 2013, due to the divestiture of the gas trading and storage business planned for the middle of 2014. BASF expects a slight increase in EBIT before special items, especially as a result of considerably higher contributions from the Performance Products and Functional Materials & Solutions segments. The company predicts a considerably higher EBIT for the BASF Group than in 2013, partially due to special income arising from the divestiture of the gas trading and storage business.
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