Sales and earnings forecast for the segments

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Forecast by segment1 (million €)

 

Sales

 

Income from operations (EBIT)
before special items

 

2013

Forecast 2014

 

2013

Forecast 2014

1

For sales, “slight” represents a change of 1-5%, while “considerable” applies for changes of 6 % and higher. “At prior-year level” indicates no change (+/–0 %).
For earnings, “slight” means a change of 1-10 %, while “considerable” is used for changes of 11% and higher. “At prior-year level” indicates no change (+/–0 %).

Chemicals

16,994

slight increase

 

2,182

slight decline

Performance Products

15,534

slight increase

 

1,365

considerable increase

Functional Materials & Solutions

17,252

slight increase

 

1,070

considerable increase

Agricultural Solutions

5,227

considerable increase

 

1,222

slight increase

Oil & Gas

14,776

considerable decline

 

1,969

slight increase

Other

4,190

considerable decline

 

(618)

slight decline

BASF Group

73,973

slight decline

 

7,190

slight increase

We strive to slightly increase sales in the Chemicals segment. In the Petrochemicals and Monomers divisions, we anticipate slight sales growth. Sales in the Intermediates division are likely to rise considerably. We expect higher sales volumes in the Monomers division, particularly for isocyanates, while the startup of new plants will contribute to sales growth in the Petrochemicals division. We forecast higher demand for the Intermediates division from the following key industries: automotive, crop protection and textile fibers. Overall, income from operations before special items is expected to be slightly below the 2013 level due to startup costs for several plants that will begin operations.

In a market environment that continues to be challenging, we aim to slightly increase sales in the Performance Products segment through organic growth. In the Dispersions & Pigments division, we anticipate higher demand from two key industries: automotive and construction. We also expect higher sales volumes in the Care Chemicals and Nutrition & Health divisions. Sales prices are likely to remain under pressure. We want to increase the capacity utilization of our existing plants and achieve high utilization of new plants, such as for superabsorbents and dispersions, from the start. We anticipate income from operations before special items considerably above the level of 2013. Strict cost discipline and respositioning measures to increase competitiveness in all areas will contribute to this.

In the Functional Materials & Solutions segment, we anticipate higher demand from our key customer sectors, especially from the automotive and construction industries. Sales volumes of our innovative specialties and system solutions are therefore likely to rise considerably. While we forecast a slight sales increase in the Catalysts division and a considerable increase in sales in the Coatings and Performance Materials divisions, we are expecting sales in the Construction Chemicals division to match the 2013 levels as a result of portfolio effects. Overall, we strive to increase sales slightly and income from operations before special items considerably, boosted especially by volumes.

In the Agricultural Solutions segment, we will continue our strategy of profitable growth with innovative products and solutions. We expect continuing high exchange rate volatility in our most important growth markets. Prices for agricultural products are likely to be lower than in 2013, while nevertheless remaining above the averages of the past five years. We anticipate significant sales growth and a slight increase in income from operations before special items.

We expect sales in the Oil & Gas segment to be significantly below the 2013 level due to the divestiture of the gas trading and storage business planned for the middle of 2014. For income from operations before special items, we anticipate a slight increase. The first all-year inclusion of the Norwegian activities acquired from Statoil ASA and the further expansion of Achimgaz production will drive this increase. We also expect to be able to resume onshore production in Libya. The asset swap planned with Gazprom will have a negative effect on income from operations before special items due to the missing contributions from the current business to be disposed of in 2014.

For Other, we expect sales to decrease significantly and income from operations before special items to decrease slightly in 2014. Lower sales for precursors and the discontinuation of compensatory payments from the divestiture of the fertilizer business will contribute to this.