BASF Q1 performance boosted by strong fungicide, herbicide sales

Date:05-06-2014

BASF Agricultural Solutions sales recorded a 6.2% increase to €1,653 million in Q1 2014, The growth was mainly driven by the sales in the Northern Hemisphere. The sales volume and prices grew 9.0% and 3.0% respectively, especially in fungicides and herbicides, while negative currency effects decreased 6.0% sales. Earnings before interest, tax, depreciation and amortisation(EBITDA) was improved by 3.8% to €552 million. Earnings before interest, tax(EBIT) boosted by 3.7% to €510 million.

BASF’s agricultural solutions results (€ million)
Q1 ended March. 31	Q1 2014	Q1 2013	% Change
Sales	1,653	1,556	+6.2
EBITDA1	552	532	+3.8
EBIT2before special items	510	498	+2.4
EBIT2	510	492	+3.7
1 earnings before interest, tax, depreciation and  amortisation 2 earnings before interest, tax

Regional sales

Sales in Europe were considerably higher year-over-year. The mild, moist weather conditionsin the winter months led to a sharp increase in demand, particularly for cereal fungicides. BASF business was very successful, especially in Germany and broad areas of Eastern Europe. BASF was able to more than compensate for negative currencyeffectswith price increases.

Despite negative currency effects, sales in North America grew slightly through higher sales volumes and prices. Innovative herbicides and fungicides were primarily responsible for this sales increase.

In Asia, sales grew slightly despite highly negative currency effects, especially in China, Japan and India . Fungicides were particularly positive.

In South America, sales were considerably below the level of the previous first quarter mostly on account of currency effects. Sales declined in Brazil mainly due to unfavorable weather conditions. 

Overall, BASF slightly improved income from operations before special
items thanks to higher volumes and prices, despite negative currency effects and increased spending on research anddevelopment.