BASF Group sales in the third quarter of 2019 declined slightly year on year and amounted to Euro 15.2 billion. This was mainly attributable to lower prices in the Materials and Chemicals segments. The uncertainties in the market and cautious ordering by customers also played a role. Demand from key customer sectors did not recover. Nevertheless, BASF was able to keep its sales volumes at the level of the prior-year quarter thanks mainly to higher volumes in the Agricultural Solutions and Surface Technologies segments. 

   Income from operations (EBIT) before special items was Euro 1.1 billion, down by 24% compared with the level of the third quarter of 2018. This was primarily due to significantly lower contributions from the Materials and Chemicals segments. As expected, isocyanate prices declined considerably. In addition, there were scheduled turnarounds at the steam crackers and falling margins for cracker products. These factors had a significant negative impact on earnings in the two segments. “In our downstream divisions, we were successful despite the difficult market environment and posted a considerable improvement compared with the prior-year quarter,” said Dr. Martin Brudermüller, Chairman of the Board of Executive Directors of BASF SE, at the presentation of the financial results for the third quarter of 2019. 

   In the Industrial Solutions segment, EBIT before special items increased considerably primarily due to lower fixed costs. In the Surface Technologies segment, EBIT before special items also rose considerably in all three divisions. In the Nutrition & Care segment, EBIT before special items grew considerably as a result of significantly higher earnings in the Care Chemicals division. In the Agricultural Solutions segment, EBIT before special items increased considerably, driven mainly by higher sales. One reason for this was the good start to the season in South America. 

   EBITDA increased to Euro 2.3 billion, compared with Euro 2.2 billion in the third quarter of 2018. EBITDA before special items was down by 8% to Euro 2.1 billion.

   EBIT amounted to Euro 1.4 billion, nearly matching the prior-year level. Special items in EBIT totaled Euro 257 million, compared with minus Euro 75 million in the prior-year period. A considerable disposal gain from the sale of BASF’s share of the Klybeck site in Basel, Switzerland, more than offset special charges for restructuring measures, for the integration of the businesses acquired from Bayer and for divestitures.

   Net income amounted to Euro 911 million, compared with Euro 1.2 billion in the third quarter of 2018.

   Earnings per share in the third quarter of 2019 fell to Euro 1.00 from Euro 1.31 in the prior-year quarter. Adjusted earnings per share were Euro 0.86, compared to Euro 1.51 in the prior-year quarter.

   Cash flows from operating activities amounted to Euro 2.0 billion, compared with Euro 2.9 billion in the third quarter of 2018. Free cash flow declined to Euro 1.1 billion as a result of lower cash flows from operating activities.

   Martin Brudermüller confirmed the 2019 outlook for the BASF Group. Accordingly, BASF still expects a slight decline in sales. For EBIT before special items, BASF expects a considerable decline of up to 30%. Return on capital employed (ROCE) for the full year 2019 is expected to decline considerably compared with 2018.

   The company slightly adjusted its underlying planning assumptions for the oil price: For 2019, BASF now expects an average Brent blend oil price for the year of US$65 per barrel (previously US$70).

   The other assumptions for the global economic environment remain unchanged (growth in gross domestic product: 2.5%; growth in industrial production: 1.5%; growth in chemical production: 1.5%; average euro/dollar exchange rate of US$1.15 per euro).