LUDWIGSHAFEN, GERMANY -- (Marketwired) -- 10/25/13 -- BASF (LSE: BFA)
•Third quarter 2013•Sales EUR 17.7 billion (plus 1.5 percent) •EBIT before special items EUR 1.7 billion (plus 15.0 percent) •January - September 2013•Sales EUR 55.8 billion (plus 3.1 percent) •EBIT before special items EUR 5.7 billion (plus 5.9 percent) •Successful business development for Functional Materials & Solutions •Outlook for 2013 confirmed: increase in sales and earnings expected; environment to remain challenging
BASF raised sales in the third quarter of 2013 by 1.5 percent to around EUR 17.7 billion despite significantly negative currency effects. This growth was mainly the result of increased volumes, particularly in the Oil & Gas segment. Income from operations (EBIT) before special items rose by EUR 221 million to just under EUR 1.7 billion.
"Our business performance was robust in the third quarter of 2013. The increase in earnings was largely due to higher contributions from the Functional Materials & Solutions and Performance Products segments in addition to lower charges in Other," said Dr. Kurt Bock, Chairman of the Board of Executive Directors of BASF SE.
Compared with the previous third quarter, EBIT rose by EUR 279 million to about EUR 1.7 billion. Income before taxes and minority interests grew by EUR 287 million to EUR 1.5 billion compared with the previous third quarter. Net income rose by EUR 171 million to around EUR 1.1 billion. Earnings per share were EUR 1.20 in the third quarter of 2013, compared with EUR 1.01 in the same quarter of 2012.
In North America, sales were EUR 3.6 billion, remaining stable in euro terms while increasing by 6 percent in U.S. dollars. Negative currency effects put a strain on sales growth in all divisions. This was offset by higher sales volumes, especially in the Catalysts division and in the Agricultural Solutions segment. EBIT before special items increased by EUR 128 million to EUR 355 million.
"Our earnings in the region rose by 56 percent mainly due to a higher contribution from Petrochemicals, which was driven by our new capability to process lighter feeds in the Port Arthur, Texas, cracker," said Hans Engel, CEO of BASF Corporation and Chief Financial Officer of BASF SE.
Year-to-date earnings through the third quarter of 2013 in North America are up 41 percent versus 2012.
Outlook for full year 2013 confirmed
The company's expectations for the global economic environment in 2013 remain unchanged:
•Growth of gross domestic product: 2.0 percent
•Growth in industrial production: 2.7 percent
•Growth in chemical production: 3.1 percent
•An average euro/dollar exchange rate of $1.30 per euro
•An average oil price for the year of $105 per barrel
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