BASF agricultural sales down 4% in Q2 2014 due to weak currency

Date:07-25-2014

In BASF Agricultural Solutions segment, sales declined by 3.5% to €1,666 million compared with the second quarter of 2013. This was due to negative currency effects. Sales prices were raised in all regions. Volumes remained stable. EBIT before special items was down by 10.7% to €433 million, €52 million below the previous second-quarter level, on account of negative currency effects and higher research expenses.

BASF’s agricultural solutions results (€ million)
Q2 ended Jun 30	Q2 2014	Q2 2013	% change	Half Year 2014	Half Year 2013	% change
Sales	1,666	1,727	-3.5	3,319	3,283	+1.1
EBITDA1	476	525	-9.3	1,028	1,057	-2.7
EBIT2 before special items	433	485	-10.7	943	983	-4.1
EBIT2	433	485	-10.7	943	977	-3.5
1 earnings before interest, tax, depreciation and amortisation 2 earnings before interest, tax

Regional sales

In Europe, sales matched the level of the previous second quarter. The business was very positive in Western Europe. BASF was able to almost fully compensate for negative currency effects, especially in Eastern Europe, with price increases.

Sales declined slightly in North America. Higher volumes and prices, especially for innovative herbicides and in the Functional Crop Care business unit, were only partly able to offset negative currency effects.

Sales in Asia fell considerably, due primarily to currency effects. Demand was high in China. BASF observed especially positive development in fungicides business.

Sales in South America were considerably below the prior second-quarter level as a result of lower volumes and negative currency effects. In Brazil, insecticide sales declined mainly because of high competitive pressure and unfavorable weather conditions.