Results of operations

In 2016, our market environment continued to be volatile and challenging; the global economy and the chemical industry saw slower growth. Overall, BASF Group business developments unfolded in line with our expectations. We posted a considerable sales decline compared with the previous year and a slightly lower income from operations (EBIT) before special items. These developments were largely the result of the divestitures completed in 2015 as well as price declines due to further drops in raw material prices. Increased sales volumes and reduced fixed costs helped counter this effect, even allowing us to achieve considerably higher EBIT before special items in the chemicals business¹.