Actual development compared with outlook for 2014

Forecast/actual comparison1

 

 

Sales

Income from operations (EBIT) before special items

 

 

2014 forecast

2014 actual

2014 forecast

2014 actual

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

 

slight increase

at prior-year level

slight decrease

slight increase

Performance Products

 

slight increase

slight decrease

considerable increase

slight increase

Functional Materials & Solutions

 

slight increase

slight increase

considerable increase

considerable increase

Agricultural Solutions

 

considerable increase

slight increase

slight increase

slight decrease

Oil & Gas

 

considerable decrease

slight increase

slight increase

slight decrease

Other

 

considerable decrease

considerable decrease

slight decrease

slight increase

BASF Group

 

slight decrease

at prior-year level

slight increase

slight increase

For 2014, we had predicted a slight decline in sales due to the planned divestiture of our gas trading and storage business as well as a considerable boost in EBIT and EBIT after cost of capital as a result of the special income expected from the divestiture. The swap did not take place. Sales therefore matched the previous year’s level; the considerable increase in EBIT after cost of capital could not be achieved. We were able to slightly raise income from operations, due in part to special income from the divestiture of the share in Styrolution Holding GmbH, reported in Other. Income from operations before special items rose slightly, as anticipated.

With sales at 2013 levels, we just missed the slight sales increase foreseen for the Chemicals segment. Sales volumes rose, as we had intended; yet declining prices and negative currency effects counterbalanced this volumes growth. Thanks to considerably higher contributions from the Petrochemicals and Intermediates divisions, the segment’s income from operations before special items grew slightly, performing better than expected. Startup costs for plants that began operations were lower than we had assumed.

We were unable to achieve the slight rise in sales anticipated in the Performance Products segment; despite stronger volumes, negative currency effects resulted in a slight decline. Increasing by 7%, income from operations before special items barely missed the considerable growth we had targeted. Especially in the Care Chemicals division’s hygiene business, earnings remained below expectations. This was further weighed down by ongoing, competition-related pressure on Vitamin E prices as well as the weaker development of our paper chemicals business.

Our expectations for the Functional Materials & Solutions segment matched actual development in 2014.

Sales in the Agricultural Solutions segment grew slightly, which was somewhat less than we had predicted. Prices for agricultural products dropped more sharply over the course of the year than expected. Negative currency effects had more of an impact than presumed, especially in the first half of the year. In this challenging market environment, income from operations before special items declined slightly, against our expectations.

For the Oil & Gas segment, we had anticipated a considerable sales decrease due to the asset swap with Gazprom. Because the swap was not carried out, sales slightly exceeded the previous year’s level. Especially because of unexpectedly sharp declines in oil and gas prices, we did not meet our aim of slightly increasing income from operations before special items; earnings declined slightly.

We achieved our sales forecast for Other. Income from operations before special items improved slightly in Other, against our expectations, as provisions were reversed for the LTI program.

In 2014, we invested a total of €5.1 billion in property, plant and equipment1, thereby surpassing the anticipated amount of around €4.4 billion. The investment increase was partly because of additions to property, plant and equipment due to the dissolution of the gas trading business disposal group as well as currency effects.

1 Excuding additions to property, plant and equipment resulting from acquisitions, capitalized exploration, restoration obligations and IT investments