BASF generated sales of Euro 59.3 billion in the 2019 business year; the slight decline in sales compared with the previous year resulted from lower volumes and prices. Income from operations (EBIT) before special items was Euro 4.5 billion, down by Euro 1.7 billion from the prior-year level as a result of lower contributions from the Materials and Chemicals segments.
“Our company performed well, even in difficult times. 2019 was a challenging year with strong global economic headwinds,” said BASF’s Chairman of the Board of Executive Directors, Dr. Martin Brudermüller, who presented the 2019 financial figures together with Chief Financial Officer Dr. Hans-Ulrich Engel. The trade conflicts between the United States and China had a negative impact. Key sales markets developed more slowly. This was intensified by the uncertainties related to Brexit. Growth in industrial and chemical production was significantly slower than expected. Demand from many key customer industries, especially from the automotive sector, declined considerably.
“We increased our earnings in all downstream segments despite the difficult market environment. Unfortunately, this could not offset the decline in the basic chemicals business,” said Brudermüller. EBIT before special items in the Materials and Chemicals segments fell by Euro 2.2 billion to Euro 1.8 billion. The sharp drop in isocyanate prices, lower cracker margins, the scheduled cracker turnarounds and overall weaker demand had a significant negative impact here.
By contrast, in the downstream segments, BASF saw a considerable year-on-year improvement: The Industrial Solutions segment increased EBIT before special items considerably in both divisions, primarily due to lower fixed costs, positive currency effects and higher margins. The Surface Technologies segment likewise saw a considerable improvement in EBIT before special items. In the Nutrition & Care segment, EBIT before special items increased slightly due to a considerable improvement in the contribution from the Care Chemicals division. The Agricultural Solutions segment significantly increased EBIT before special items. “The assets and businesses acquired from Bayer performed very well. They contributed significantly to the increase in sales and earnings,” said Brudermüller.
In 2019, BASF Group’s EBIT declined from €6.0 billion to €4.1 billion. EBITDA before special items decreased by 11 percent compared with 2018 to €8.2 billion. EBITDA amounted to Euro 8.0 billion, compared with €9.0 billion in 2018. Net income rose to €8.4 billion from €4.7 billion in the previous year. This contained a book gain of around €5.7 billion resulting from the deconsolidation of Wintershall following the merger with DEA.

Sales and earnings development of the BASF Group in Q4 2019

Sales in the fourth quarter of 2019 declined by 2 percent compared with the prior-year quarter to Euro 14.7 billion. Volumes and prices each decreased by 1 percent. The portfolio effects resulting from the transfer of the business with paper and water chemicals to Solenis amounted to minus 1 percent. Currency effects had a slightly positive influence of plus 1 percent on sales development.
EBIT before special items amounted to Euro 765 million, up by 23 percent compared with the fourth quarter of 2018. This increase was driven by significantly higher earnings in the Agricultural Solutions, Nutrition & Care, Industrial Solutions and Surface Technologies segments. Overall, these segments were able to more than compensate for the considerable decline in the Chemicals and Materials segments in the fourth quarter.
Special items in EBIT amounted to minus Euro 305 million. In the fourth quarter of 2018, the corresponding figure was minus Euro 151 million. Special charges in the fourth quarter of 2019 were recorded in particular in Other and the Industrial Solutions segment. In Other, these resulted from the implementation of the Excellence Program. The divestiture of the BASF pigments business led to one-off effects in the Industrial Solutions segment. EBIT declined by 2 percent in the fourth quarter of 2019 to Euro 460 million.