BASF Quarterly Statement Q1 2020. Sales of ˆ16.8 billion
11.06.2020 12:01 "Agro Perspectiva" (Kyiv) —
BASF Group shows resilience amid corona crisis with diversified portfolio and financial solidity.
Sales of ˆ16.8 billion (+7%), mainly due to volumes growth EBIT before special items of ˆ1.6 billion (-6%), primarily as a result of lower earnings in the Chemicals and Materials segments.
EBIT before special items improves in all downstream segments.
BASF with solid financing; equity ratio of 47%.
The Agricultural Solutions segment recorded considerable sales growth compared with the first quarter of 2019. This was primarily attributable to higher volumes, especially in North America and Europe. The earlier demand triggered by the corona pandemic had a positive impact on sales volumes. A lower price level had a slight offsetting effect.
In Europe, sales rose slightly year on year as a result of higher sales volumes. This development was mainly due to higher demand for herbicides, seed treatments, and seeds and traits.
Sales in North America improved considerably. We significantly increased volumes especially of herbicides and fungicides compared with the first quarter of 2019, which was affected by extreme weather conditions. The sales development was also supported by positive currency effects. By contrast, lower price levels had a dampening effect on sales.
In Asia, sales were considerably above the figure for the first quarter of 2019 due to higher sales volumes, especially of herbicides in China, Australia and Japan. Positive currency effects also contributed to the sales development.
We considerably increased sales in the region South America, Africa, Middle East. This was mainly driven by higher volumes, particularly of fungicides and herbicides. Slightly higher prices also had a positive impact on sales. Significantly negative currency effects, especially in Brazil, had an offsetting effect.
Income from operations (EBIT) before special items was slightly higher than in the first quarter of 2019. This was largely the result of higher sales, mainly due to earlier demand as a consequence of the corona pandemic, and lower fixed costs.