Regions

Q2 2019

Sales at companies located in Europe declined by 9% compared with the second quarter of 2018. This was mainly due to lower volumes in virtually all segments, but especially in the Chemicals segment. Lower prices, particularly in the Materials and Chemicals segments, also weighed on sales. Portfolio effects in the Agricultural Solutions segment had an offsetting impact. At €404 million, income from operations (EBIT) was down €745 million from the figure in the prior-year quarter. This was largely attributable to significantly lower contributions from the Chemicals segment, Other and the Materials segment. The Industrial Solutions segment recorded slight earnings growth.

In North America, sales in euros were up 2% from the prior-year quarter, primarily due to portfolio effects in the Agricultural Solutions segment and positive currency effects in all segments. Sales were reduced by lower volumes, especially in the Chemicals and Agricultural Solutions segments. Prices also declined slightly overall. In local currency terms, sales decreased by 3%. EBIT declined by €456 million to minus €190 million. The main contributing factors here were the costs for the scheduled turnaround of the steam cracker in Port Arthur, Texas, the special charge from the impairment of a natural gas-based investment on the U.S. Gulf Coast, which BASF is no longer pursuing, and lower earnings in the Agricultural Solutions segment.

Sales in Asia Pacific decreased by 7% in local currency terms and 5% in euros. This was attributable to lower prices and volumes, mainly in the Materials segment. Positive currency effects had an offsetting impact. EBIT declined by €209 million compared with the second quarter of 2018 to €314 million. This was mainly due to considerably lower EBIT in the Materials segment. The contribution from the Chemicals segment was also significantly lower. EBIT rose considerably in the Industrial Solutions, Surface Technologies and Nutrition & Care segments; Agricultural Solutions remained on a level with the prior year.

In the region South America, Africa, Middle East, we improved sales by 21% in local currency terms and 15% in euros as against the prior-year quarter. Sales growth was primarily driven by higher volumes in all segments and higher prices, especially in the Agricultural Solutions and Surface Technologies segments. Portfolio effects in the Agricultural Solutions segment also had a positive impact on sales development. Sales were dampened by currency effects. At €20 million, EBIT exceeded the figure for the second quarter of 2018 by €52 million. This was the result of higher contributions from all segments except Materials.