Sales and income from operations before special items

Sales
 

+3%

  • Slight increase, mostly through higher sales volumes
  • Negative currency effects slow down sales growth

Income from operations before special items

+8%

  • Slight increase compared with 2012
  • Earnings improve, especially in Agricultural Solutions, Functional Materials & Solutions and Other
Sales2
(million €)
Sales (bar chart)Enlarge image

2 The figures for 2009 to 2011 were not restated according to IFRS 10 and 11 (see Data). The figures for 2012 are shown before and after the restatement.

Income from operations before special items2 (million €)
Income from operations (bar chart)Enlarge image

2 The figures for 2009 to 2011 were not restated according to IFRS 10 and 11 (see Data). The figures for 2012 are shown before and after the restatement.

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Factors influencing sales BASF Group

 

Change in million €

Change in %

Volumes

3,732

5

Prices

(467)

0

Currencies

(2,006)

(3)

Acquisitions and changes in the scope of consolidation

793

1

Divestitures

(208)

0

Total change in sales

1,844

3

We increased sales by just under 3% to €73,973 in 2013, primarily through higher sales volumes. The Oil & Gas and Agricultural Solutions segments posted an especially considerable volumes increase. Sales volumes grew slightly in the chemicals business. The acquisitions of Pronova BioPharma ASA and the Becker Underwood Group, as well as of assets from Statoil ASA, also contributed to sales growth. Sales prices were stable overall. Sales were negatively impacted by currency effects. Income from operations before special items surpassed the 2012 level by around 8%, reaching €7,190 million. This was largely owing to the considerable earnings increase in the Agricultural Solutions and Functional Materials & Solutions segments as well as significantly improved earnings in Other. Partly counteracting this development was a lower contribution from the Performance Products segment.

Sales in the Chemicals segment were 5% below the level of 2012 as a result of falling prices and negative currency effects. We increased sales volumes in the Intermediates and Monomers divisions. Volumes declined in the Petrochemicals division, however, due in part to scheduled plant shutdowns. Income from operations before special items rose by 1% overall. This was attributable to the significantly higher contribution from the Petrochemicals division.

In the Performance Products segment, sales were down by 1% in 2013 despite higher volumes. Negative currency effects and lower prices resulting from reduced raw material costs were responsible for this decrease. The acquisition of Pronova BioPharma had a positive impact on sales. We posted a 4% decline in income from operations before special items. This was mainly owing to negative currency effects.

We improved sales by 1% in the Functional Materials & Solutions segment, especially through higher sales volumes in the Performance Materials and Catalysts divisions. Sales declined considerably in the Construction Chemicals division, due primarily to currency effects. We raised income from operations before special items by 15%. All divisions contributed to this increase.

Sales in the Agricultural Solutions segment exceeded the level of 2012 by 12%. In a positive market environment, we raised sales volumes and prices in all regions and indications. The acquisition of Becker Underwood also boosted sales growth; negative currency effects had an adverse impact. Income from operations before special items rose by 18%, thanks in particular to the increase in volumes and prices.

Mainly as a result of increased volumes, sales in the Oil & Gas segment grew by 16%. In the Exploration & Production business sector, this growth was particularly attributable to the activities acquired from Statoil in Norway, as well as to higher volumes in Russia and from our offshore field in Libya. Volumes also rose in the Natural Gas Trading business sector. Income from operations before special items surpassed the level of 2012 by 5%. A considerably higher contribution from the Exploration & Production business sector was able to more than offset the margin-related earnings decline in the Natural Gas Trading business sector.

Sales in Other grew by €129 million to €4,190 million in comparison with the previous year. This was due to increased sales for precursors not assigned to a particular segment. Income from operations before special items improved to minus €618 million as a result of lower charges, such as those from the long-term incentive program, compared with minus €790 million in 2012.

Income from operations before special items for the BASF Group includes income from companies accounted for using the equity method. In 2013, this amounted to €298 million compared with €361 million in the previous year. The decline was mainly attributable to lower contributions from the Oil & Gas segment.