04.30.15
BASF executives are in a celebratory mood as the company marks its 150th anniversary and a 3% gain in first quarter results. The company said that higher volumes and positive currency effects led to sales growth. Q1 sales totaled €20.1 billion.
"Our chemicals and our crop protection businesses performed very successfully; earnings in these segments increased significantly," said Kurt Bock, chairman. The chemicals business comprises the chemicals, performance products and functional materials & solutions segments. Income from operations (EBIT) before special items was down by 2% to just under €2.1 billion as a result of considerably higher charges from Other, mainly due to higher provisions for the long-term incentive (LTI) program as a result of the positive performance of BASF shares.
EBIT fell by €226 million to €2.0 billion compared with the first quarter of 2014. The previous first quarter had included tax-free special income from the disposal of shares in non-BASF-operated oil and gas fields in the British North Sea. At minus €164 million, the financial result was above the level of the first quarter of 2014 (minus €183 million).
Income before taxes and minority interests fell by €207 million quarter-on-quarter to €1.8 billion. Net income declined by €290 million to €1.2 billion. Earnings per share were €1.28 in the first quarter, compared with €1.59 in the same period of 2014.
For the full year, the company's outlook remains unchanged:
• Growth of gross domestic product: 2.8%
• Growth in industrial production: 3.6%
• Growth in chemical production: 4.2%
• An average euro/dollar exchange rate of $1.20 per euro
• An average oil price for the year of $60 to $70 per barrel
In this environment, BASF expects a slight increase in sales in 2015. This will be largely supported by the sales growth anticipated in the Functional Materials & Solutions and Performance Products segments. BASF wants to raise sales volumes overall, excluding the effects of acquisitions and divestitures. EBIT before special items in 2015 will likely match the previous year's level. The company anticipates larger contributions from its chemicals and crop protection businesses, whereas earnings in the Oil & Gas segment are expected to decrease considerably due to the lower price of oil, according to BASF.
"Our chemicals and our crop protection businesses performed very successfully; earnings in these segments increased significantly," said Kurt Bock, chairman. The chemicals business comprises the chemicals, performance products and functional materials & solutions segments. Income from operations (EBIT) before special items was down by 2% to just under €2.1 billion as a result of considerably higher charges from Other, mainly due to higher provisions for the long-term incentive (LTI) program as a result of the positive performance of BASF shares.
EBIT fell by €226 million to €2.0 billion compared with the first quarter of 2014. The previous first quarter had included tax-free special income from the disposal of shares in non-BASF-operated oil and gas fields in the British North Sea. At minus €164 million, the financial result was above the level of the first quarter of 2014 (minus €183 million).
Income before taxes and minority interests fell by €207 million quarter-on-quarter to €1.8 billion. Net income declined by €290 million to €1.2 billion. Earnings per share were €1.28 in the first quarter, compared with €1.59 in the same period of 2014.
For the full year, the company's outlook remains unchanged:
• Growth of gross domestic product: 2.8%
• Growth in industrial production: 3.6%
• Growth in chemical production: 4.2%
• An average euro/dollar exchange rate of $1.20 per euro
• An average oil price for the year of $60 to $70 per barrel
In this environment, BASF expects a slight increase in sales in 2015. This will be largely supported by the sales growth anticipated in the Functional Materials & Solutions and Performance Products segments. BASF wants to raise sales volumes overall, excluding the effects of acquisitions and divestitures. EBIT before special items in 2015 will likely match the previous year's level. The company anticipates larger contributions from its chemicals and crop protection businesses, whereas earnings in the Oil & Gas segment are expected to decrease considerably due to the lower price of oil, according to BASF.