Business review

Agricultural Solutions

Sales – Agricultural Solutions (million €)
Agricultural Solutions – Sales (bar chart)Enlarge image

We improved sales to third parties in 2013 by €548 million to €5,227 million. Thanks to more favorable weather conditions, agriculture grew faster than in the previous year despite the late start to the season in the northern hemisphere. In this positive market environment, we raised both sales volumes and prices. Despite increased expenses for the expansion of our business activities, income from operations before special items exceeded the previous year’s level by €185 million to reach €1,222 million. Special charges were mostly related to the integration of the Becker Underwood business acquired in November 2012. Income from operations therefore rose by €182 million to €1,208 million.

We will continue our strategy of profitable growth with innovative products and solutions in 2014. We expect continuing high exchange rate volatility in our most important growth markets. Prices for agricultural products are expected to be lower than in 2013, while nevertheless remaining above the averages of the last five years. We anticipate significant sales growth and a slight increase in income from operations before special items.

Factors influencing sales – Agricultural Solutions
Agricultural Solutions – Factors influencing sales (bar chart)Enlarge image
Income from operations before special items – Agricultural Solutions (million €)
Agricultural Solutions – Income from operations (bar chart)Enlarge image

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Segment data Agricultural Solutions1 (million €)

 

 

2013

2012

Change in %

1

Research and development expenses, sales, earnings and all other data of BASF Plant Science are not included in the Agricultural Solutions segment; they are reported in Other.

Sales to third parties

 

5,227

4,679

12

Intersegmental transfers

 

36

29

24

Sales including intersegmental transfers

 

5,263

4,708

12

Income from operations before depreciation and amortization (EBITDA)

1,375

1,182

16

EBITDA margin

%

26.3

25.3

Income from operations (EBIT) before special items

1,222

1,037

18

Income from operations (EBIT)

 

1,208

1,026

18

Income from operations (EBIT) after cost of capital

 

447

384

16

Assets

 

6,777

6,527

4

Research and development expenses

 

469

430

9

Additions to property, plant and equipment and intangible assets

 

324

1,054

(69)

Crop Protection

  • Sales rise considerably thanks to higher volumes and sales prices as well as portfolio effects
  • Sales grow in almost all regions and indications
  • Significant earnings increase

Business was very successful in the Crop Protection division in 2013. We increased sales to third parties by €548 million to €5,227 million compared with the previous year. This significant sales growth was chiefly due to increased volumes and prices in all regions and indications. The acquisition of Becker Underwood further increased sales. We successfully completed the integration of the acquired activities in the third quarter. Negative currency effects particularly impacted our business in the emerging markets (volumes 10%, prices 3%, portfolio 4%, currencies –5%).

In Europe, sales increased year-on-year by €126 million to €1,946 million. This was largely the result of higher volumes and sales prices for fungicides, especially Xemium®, and for herbicides. Our business developed successfully, especially in Germany and France.

Sales in North America exceeded the previous year’s level by €389 million, amounting to €1,497 million. Growth was particularly driven by greater demand and higher prices for fungicides and herbicides. The acquisition of Becker Underwood also contributed significantly to this sharp increase in sales. Negative currency effects dampened sales.

Sales in Asia declined by €12 million to €513 million. The depreciation of numerous currencies in the region relative to the euro had a negative impact on sales development. Increased demand for fungicides in growing markets such as China, Indonesia and India were not able to fully offset this.

In South America, we improved sales by €45 million to €1,271 million despite highly negative currency effects. Sales volumes for insecticides grew. We successfully launched our Kixor® herbicide and Xemium® fungicide on the Brazilian market.

At €1,222 million, income from operations before special items in the Crop Protection division exceeded the level of 2012 by €185 million. This significant growth was primarily the result of increased volumes and sales prices.

Crop Protection – Sales by region (Location of customer)
Agricultural Solutions – Crop Protection – Sales by region (pie chart)Enlarge image
Crop Protection – Sales by indication and sector
Agricultural Solutions – Crop Protection – Sales by indication (pie chart)Enlarge image

* Including pest control