BASF’s agricultural sales fell by 3% in Q3 2014

Date:10-27-2014

The sales of BASF’s Agricultural Solutions segment were 3.4% below the level of the third quarter of 2013. Price increases in all regions were unable to compensate for a drop in sales volumes. Earnings – in a  generally seasonally weak quarter – fell by €129 million to €43 million. In addition to lower volumes, this was largely a result of weaker margins due to a less favorable product mix as well as increased expenses for research and development, production, and  distribution.

Europe saw a considerable, mainly volumes-related decline in sales. Sharply decreased canola prices resulted in less cultivated acreage, which led to lower demand for canola herbicides.

Sales in North America were down considerably. Prices were lower for agricultural raw materials and demand decreased, especially for fungicides. Business in the region was also dampened by our customers’ reduction in stockpiled inventories.

In Asia, sales were slightly above the level of the previous third quarter. Decreases in China and Southeat Asia were off-set by growth in India and South Korea, as well as by higher process.

Sales in South America was slightly increased. BASF’s innovative fungicide Xemium and herbicide Kixor in Brazil showed particularly good development. The company saw raised volumes and sales prices in the region.

Income from operations before special items declined considerably. In addition to lower volumes, earnings were dampened by falling margins from a less favorable product mix. Increased expenses for research and development as well as production and distribution also contributed to this decline.

BASF’s agricultural solutions results (€ million)
Q2 ended Sep 30	Q3 2014	Q3 2013	% change	Nine-month 2014	Nine-month 2013	% change
Sales	1,018	1,054	-3.4	4,337	4,337	0
EBITDA1	93	210	-55.7	1,121	1,267	-11.5
EBIT2 before special items	43	172	-75.0	986	1,155	-14.6
EBIT2	43	168	-74.4	986	1,145	-13.9
1 earnings before interest, tax, depreciation and amortisation 2 earnings before interest, tax