BASF crop protection sales up 12% in 2012

Date:03-07-2013

Sales of BASF’s crop protection segment rose by 12.3% to €4,679 million in 2012, mainly as a result of higher sales volumes. This considerable sales growth was additionally boosted by positive currency effects and higher prices. Income from operations (EBIT) boosted by 27% to reach a new record level of €1, 026 million due to the successful development of business. Earnings before interest, tax, depreciation and amortisation (EBITDA) was improved by 20.5% to €1,182 million. Fungicides were the main business category, accounting for 45% of total sales in 2012. Herbicides accounted for 34% of total sales, while insecticides and other occupied the rest of 21%.

For the fourth quarter of 2012, crop protection sales were up 6.7% to €877 million. EBITDA and EBIT were both down by 19.5% and 38.5%, to €70 million and €24 million, respectively.



Regional sales

BASF was able to increase sales volumes in all indications and regions due to positive currency effects and higher sales prices.

In Europe, sales rose by 9.7% compared with the previous year to €1,820 million. This growth was mostly attributable to high demand for fungicides and herbicides. BASF successfully launched the new fungicide Xemium® in their core markets in Western Europe. In herbicides, the company posted strong demand in Eastern Europe for herbicide tolerance system, Clearfield®. BASF was able to raise sales volumes for canola (oilseed rape) herbicides in Western Europe. Higher sales prices additionally supported sales development. Sales of Europe accounted for 39% of total sales.

Sales in North America grew by 14.8% to €1,108 million. This was especially due to the stronger U.S. dollar and to higher prices. Business with herbicides based on the active ingredient Kixor® as well as with imidazolinone herbicides saw particularly successful development. Despite the drought in the Midwestern United States, the company also increased their sales with fungicides.

In Asia, sales improved by 11% to €525 million due to higher volumes and positive currency effects. This increase was the result of successful herbicide business in India as well as high demand for products based on the fungicide F 500®. The weaker season in Japan dampened sales growth.

At €1,226 million, sales to customers in South America in 2012 exceeded the level of the previous year by 16.3%, despite the drought in the first half of the year. Increased demand for fipronil-based insecticides and for F 500® served as a particular growth driver. Positive currency effects also contributed to this increase in sales.

Outlook

In 2013, BASF expects the market environment to remain positive. The company anticipates prices for agricultural products that continue to be above historical averages, yet which show high volatility. In addition to agricultural commodity prices and weather conditions, the exchange rates of important currencies will play a key role in business development. In view of the acquisition of Becker Underwood and the resulting expansion of product range for biological crop protection products, BASF aim to once again increase sales and earnings in 2013 compared with the high levels of the previous year.