BASF Increases Earnings in 4Q, Full Year 2014

In the fourth quarter of 2014, BASF Group sales of €18.0 billion almost matched the level of the previous year (fourth quarter of 2013: €18.1 billion). Sales volumes increased by 1%. The company had considerable earnings increases in Chemicals and Agricultural Solutions, and a significant earnings decrease in the Oil & Gas segment due to lower oil prices.
 
At €74.3 billion, sales in 2014 matched the level of the previous year (2013: €74.0 billion). Sales volumes increased in all segments in 2014. Overall volumes grew by 4%. Prices decreased by 3%, largely due to significant decreases in oil and gas prices. Negative currency effects dampened sales in almost all divisions.
 
“We achieved our goal for 2014: We increased earnings – despite the disappointing economic development in Europe. We grew profitably. We further strengthened our chemicals business and in turn improved our margins. We have our costs firmly under control. This is an outstanding achievement of the entire BASF team,” said Dr. Kurt Bock, chairman of the Board of Executive Directors of BASF SE.
 
EBIT before special items grew by €280 million to €7.4 billion in 2014. This was primarily the result of a larger contribution from the chemicals business – comprising the Chemicals, Performance Products and Functional Materials & Solutions segments. EBIT was up €466 million from the previous year’s level and reached €7.6 billion. Net income amounted to €5.2 billion, exceeding the previous year’s level of €4.8 billion. Earnings per share rose from €5.22 to €5.61. Adjusted earnings per share were €5.44 compared with €5.31 in the previous year.
 
“The outlook for the 2015 business year is subject to significant uncertainty. Oil and raw material prices are volatile, as are currencies; the emerging markets are growing more slowly; and the global economy is being dampened by geopolitical conflict. For 2015, we nevertheless anticipate somewhat stronger growth in the global economy, industrial production and the chemical industry than in 2014,” said Bock.
 
In the Chemicals segment, fourth-quarter sales declined by 3% to €4.1 billion due to lower prices and volumes. EBIT before special items rose by €70 million to €580 million due to higher contributions from the Petrochemicals division. For the full year, sales in the Chemicals segment were €17.0 billion and matched the level of the previous year. Falling prices in all divisions were offset by higher sales volumes, especially in the Petrochemicals division.
 
At €2.4 billion, EBIT before special items surpassed the level of 2013 by €185 million. This was predominantly on account of substantially larger contributions from the Petrochemicals and Intermediates divisions. The Monomers division, however, posted a considerable, margin-related decline in earnings.
 
In the Functional Materials & Solutions segment, sales in the fourth quarter rose by 8% to €4.4 billion due to higher volumes and positive currency effects. EBIT before special items decreased by €18 million to €220 million. For the full year, sales rose 3% to €17.7 billion due to significantly higher sales volumes – especially of products for the automotive industry. The increase was curbed by negative currency effects. Prices were stable overall. EBIT before special items rose by €127 million to €1.2 billion through considerable increases in the Catalysts and Coatings divisions.