04.29.16
The divestiture of the gas trading and storage business led BASF Goup to report a 29% decline in Q1 sales. Group sales plunged 29% to €14.2 billion ($16.2 billion at current exchange rates). The gas trading and storage business had contributed to E4.2 billion in sales.The company said earnings before interest and taxes before special items fell 8% to €1.9 billion.
BASF said the lower price of oil led to declining sales prices, especially in the chemicals segment. Overall sales volumes matched the level of the previous first quarter. Volumes increased slightly in the functional materials & solutions, oil & gas and performance products segments. Volumes fell slightly in the agricultural solutions and chemicals segments.
"We were able to slightly increase EBIT before special items in the performance products, functional materials & solutions and agricultural solutions segments," said Chairman Dr. Kurt Bock.
Chemical sales fell 19% to €3.1 billion primarily due to price drops brought about by the decline in raw material prices. Sales volumes decreased particularly in the Petrochemicals division in North America. At €465 million, EBIT before special items was down by €261 million compared with the first quarter of 2015, which had been marked by high margins. In addition to lower margins, this reduction was also attributable to increased fixed costs arising primarily from the startup of new plants in 2015.
BASF said the lower price of oil led to declining sales prices, especially in the chemicals segment. Overall sales volumes matched the level of the previous first quarter. Volumes increased slightly in the functional materials & solutions, oil & gas and performance products segments. Volumes fell slightly in the agricultural solutions and chemicals segments.
"We were able to slightly increase EBIT before special items in the performance products, functional materials & solutions and agricultural solutions segments," said Chairman Dr. Kurt Bock.
Chemical sales fell 19% to €3.1 billion primarily due to price drops brought about by the decline in raw material prices. Sales volumes decreased particularly in the Petrochemicals division in North America. At €465 million, EBIT before special items was down by €261 million compared with the first quarter of 2015, which had been marked by high margins. In addition to lower margins, this reduction was also attributable to increased fixed costs arising primarily from the startup of new plants in 2015.