BASF increases sales and earnings and is cautiously optimistic for 2014

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For 2014, BASF assumes the following economic conditions (previous year figures in parentheses):

• Global economic growth: +2.8% (+2.3%)

• Growth in global chemical production (without pharmaceuticals): +4.4% (+4.6%)

• An average euro/dollar exchange rate of $1.30 per euro ($1.33 per euro)

• An average oil price (Brent) of $110 per barrel ($109 per barrel)

Bock: “Overall, we expect to perform well in a market environment that remains challenging in 2014. We aim to increase our sales volumes excluding the effects of acquisitions and divestitures.” Nonetheless, sales are likely to decline slightly compared with 2013, due to the divestiture of the gas trading and storage business planned for the middle of 2014. BASF expects a slight increase in EBIT before special items, especially as a result of considerably higher contributions from the Performance Products and Functional Materials & Solutions segments. The company predicts a considerably higher EBIT for the BASF Group than in 2013, partially due to special income arising from the divestiture of the gas trading and storage business. “We aim to considerably increase EBIT after cost of capital and therefore again earn a high premium on our cost of capital,” continued Bock.

Development of the segments

In the Chemicals segment, fourth-quarter sales decreased by 5% to €4.2 billion. Higher sales volumes in all divisions could not compensate for lower prices and adverse currency effects. EBIT before special items rose by €65 million to €510 million, primarily as a result of substantially higher earnings in Petrochemicals. Sales for the full year declined by 5% compared with the previous year to €17.0 billion on account of lower prices and negative currency effects. EBIT before special items rose by €11 million to €2.2 billion.

Sales in Performance Products in the fourth quarter were stable at around €3.7 billion. Higher volumes compensated for lower prices and negative currency effects. EBIT before special items increased by €33 million to €216 million due to higher volumes and improved margins. Despite higher volumes, sales for the full year decreased by 1% to €15.5 billion. Compared with 2012, EBIT before special items decreased by €56 million to €1.4 billion.

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