BASF agchem sales up 4% in 2014

Date:03-02-2015

Sales of BASF’s crop protection rose by 4.2% to €5,446 million in 2014 . This was mostly attributable to vigorous business in Europe and North America as well as increased demand for fungicides and herbicides. In the first half of the year, negative currency developments particularly affected BASF’s business in the emerging markets (volumes 5%, prices 2%, currencies –3%).

BASF’s agricultural solutions results (€ million)
Q4 ended Dec 31	Q4 2013	Q4 2014	% Change	Full Year 2013	Full Year 2014	% Change
Sales	890	1,109	+24.6	5,227	5,446	+4.2
EBITDA1	108	176	+63.0	1,375	1,297	-5.7
EBIT2 before special items	67	123	+83.6	1,222	1,109	-9.2
EBIT2	63	122	+93.7	1,208	1,108	-8.3
1 earnings before interest, tax, depreciation and amortisation 2 earnings before interest, tax

For the fourth quarter of 2014, BASF’s crop protection sales rose 24.6% to €1,109 million year-on-year. EBITDA and EBIT were both up by 63.0% and 93.7%, to €176 million and €122 million, respectively.

Sales in Europe grew by €100 million to €2,046 million year-on-year. This was mainly because of a strong start to the year, especially in western and central Europe. Demand for fungicides was high after the mild, humid winter. BASF was able to increase sales prices overall.

In North America, sales grew by €77 million year-on-year to €1,574 million, primarily driven by greater demand and by price increases in innovative herbicides. Sales were negatively impacted by currency exchange effects.

Sales in Asia amounted to €526 million, exceeding the level of 2013 by €13 million. This was largely on account of high demand for fungicides in China and BASF’s successful direct business in Australia. Negative currency effects reduced sales growth in the region.

In South America, BASF improved sales by €29 million to €1,300 million, despite the first half of the year’s sharply negative currency effects and the pressure exerted on insecticides by generic products. BASF’s innovative fungicide Xemium® and herbicide Kixor® performed especially well.

Income from operations before special items was down by 9.2% to €1,109 million in 2014. This decline was due to negative currency effects, especially in the first half of the year; declining margins resulting from an unfavorable product mix; and higher expenditures for research and development and for production and distribution as part of exploiting future growth opportunities.

Outlook

BASF expects prices for agricultural products to remain at the level of the second half of 2014. With exchange rates developing more favorably overall, the company anticipates high market volatility. In this environment, BASF sets the ambitious goal of increasing sales volumes and considerably improving sales and income from operations before special items.