Results of Operations

The world economy saw much weaker growth in 2019 than in 2018. Growth in global industrial production and in the global chemical industry (excluding pharmaceuticals) was also significantly below the prior-year level. In this market environment, BASF’s business did not perform as well as we expected: Sales were down slightly from the prior-year figure and earnings declined considerably.

Sales and earnings (Million €)

 

 

2019

2018

+/–

a

Amortization of intangible assets and depreciation of property, plant and equipment (including impairments and reversals of impairments) excluding depreciation and amortization attributable to the discontinued construction chemicals business

Sales

 

59,316

60,220

(1.5%)

Income from operations before depreciation, amortization and special items

 

8,217

9,271

(11.4%)

Income from operations before depreciation and amortization (EBITDA)

 

8,036

8,970

(10.4%)

EBITDA margin

%

13.5

14.9

Depreciation and amortizationa

 

3,984

2,996

33.0%

Income from operations (EBIT)

 

4,052

5,974

(32.2%)

Special items

 

(484)

(307)

(57.7%)

EBIT before special items

 

4,536

6,281

(27.8%)

Financial result

 

(750)

(741)

(1.2%)

Income before income taxes

 

3,302

5,233

(36.9%)

Income after taxes from continuing operations

 

2,546

4,116

(38.1%)

Income after taxes from discontinued operations

 

5,945

863

.

Net income

 

8,421

4,707

78.9%

Earnings per share

9.17

5.12

79.1%

Adjusted earnings per share

4.00

5.87

(31.9%)

Sales and earnings by quarter in 2019a (Million €)

 

 

Q1

Q2

Q3

Q4

Full year

a

Quarterly results not audited

b

Amortization of intangible assets and depreciation of property, plant and equipment (including impairments and reversals of impairments) excluding depreciation and amortization attributable to the discontinued construction chemicals business

Sales

 

15,596

14,478

14,556

14,686

59,316

Income from operations before depreciation and amortization and special items

 

2,614

1,874

1,989

1,740

8,217

Income from operations before depreciation and amortization (EBITDA)

 

2,742

1,535

2,268

1,491

8,036

Depreciation and amortizationb

 

991

1,039

923

1,031

3,984

Income from operations (EBIT)

 

1,751

496

1,345

460

4,052

Special items

 

29

(488)

280

(305)

(484)

EBIT before special items

 

1,722

984

1,065

765

4,536

Financial result

 

(195)

(203)

(168)

(184)

(750)

Income before income taxes

 

1,556

293

1,177

276

3,302

Income after taxes from continuing operations

 

1,163

243

917

223

2,546

Income after taxes from discontinued operations

 

277

5,686

18

(36)

5,945

Net income

 

1,406

5,954

911

150

8,421

Earnings per share

1.53

6.48

1.00

0.16

9.17

Adjusted earnings per share

1.70

0.68

0.99

0.63

4.00

Sales and earnings by quarter in 2018a (Million €)

 

 

Q1

Q2

Q3

Q4

Full year

a

Quarterly results not audited

b

Amortization of intangible assets and depreciation of property, plant and equipment (including impairments and reversals of impairments) excluding depreciation and amortization attributable to the discontinued construction chemicals business

Sales

 

15,156

15,119

14,960

14,985

60,220

Income from operations before depreciation and amortization and special items

 

2,977

2,639

2,204

1,451

9,271

Income from operations before depreciation and amortization (EBITDA)

 

2,961

2,575

2,131

1,303

8,970

Depreciation and amortizationb

 

698

703

762

833

2,996

Income from operations (EBIT)

 

2,263

1,872

1,369

470

5,974

Special items

 

(17)

(66)

(73)

(151)

(307)

EBIT before special items

 

2,280

1,938

1,442

621

6,281

Financial result

 

(181)

(191)

(137)

(232)

(741)

Income before income taxes

 

2,082

1,681

1,232

238

5,233

Income after taxes from continuing operations

 

1,582

1,332

1,016

186

4,116

Income after taxes from discontinued operations

 

176

191

251

245

863

Net income

 

1,679

1,480

1,200

348

4,707

Earnings per share

1.83

1.61

1.31

0.37

5.12

Adjusted earnings per share

1.91

1.76

1.48

0.72

5.87