Results of Operations

The world economy saw slightly weaker growth in 2018 than in 2017, with momentum increasingly slowing over the course of the year. Growth in global industrial production was also down slightly year on year, while the global chemical industry (excluding pharmaceuticals) saw a stronger decrease. In this market environment, BASF did not perform as well as we expected. Although we increased sales slightly, earnings declined considerably. All segments were affected by the earnings decrease. Earnings rose in the discontinued oil and gas business.

Business reviews by segment

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Sales and earnings (Million €)

 

 

2018

2017

+/–

1

Amortization of intangible assets and depreciation of property, plant and equipment (including impairments and reversals of impairments) excluding depreciation and amortization attributable to the discontinued oil and gas business

Sales

 

 

62,675

61,223

2.4%

Income from operations before depreciation, amortization and special items

 

 

9,481

10,738

(11.7%)

Income from operations before depreciation and amortization (EBITDA)

 

 

9,166

10,765

(14.9%)

EBITDA margin

 

%

14.6

17.6

–

Depreciation and amortization1

 

 

3,133

3,178

(1.4%)

Income from operations (EBIT)

 

 

6,033

7,587

(20.5%)

Special items

 

 

(320)

(58)

.

EBIT before special items

 

 

6,353

7,645

(16.9%)

Financial result

 

 

(745)

(705)

(5.7%)

Income before income taxes

 

 

5,288

6,882

(23.2%)

Income after taxes from continuing operations

 

 

4,150

5,592

(25.8%)

Income after taxes from discontinued operations

 

 

829

760

9.1%

Net income

 

 

4,707

6,078

(22.6%)

Earnings per share

 

€

5.12

6.62

(22.7%)

Adjusted earnings per share

 

€

5.87

6.44

(8.9%)

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Sales and earnings by quarter in 20182 (Million €)

 

 

 

Q1

Q2

Q3

Q4

Full year

1

Amortization of intangible assets and depreciation of property, plant and equipment (including impairments and reversals of impairments) excluding depreciation and amortization attributable to the discontinued oil and gas business

2

Quarterly results not audited

Sales

 

 

15,700

15,783

15,606

15,586

62,675

Income from operations before depreciation, amortization and special items

 

 

3,013

2,709

2,263

1,496

9,481

Income from operations before depreciation and amortization (EBITDA)

 

 

2,995

2,645

2,190

1,336

9,166

Depreciation and amortization1

 

 

732

739

795

867

3,133

Income from operations (EBIT)

 

 

2,263

1,906

1,395

469

6,033

Special items

 

 

(18)

(66)

(75)

(161)

(320)

EBIT before special items

 

 

2,281

1,972

1,470

630

6,353

Financial result

 

 

(181)

(192)

(138)

(234)

(745)

Income before income taxes

 

 

2,082

1,714

1,257

235

5,288

Income after taxes from continuing operations

 

 

1,581

1,361

1,032

176

4,150

Income after taxes from discontinued operations

 

 

177

162

235

255

829

Net income

 

 

1,679

1,480

1,200

348

4,707

Earnings per share

 

€

1.83

1.61

1.31

0.37

5.12

Adjusted earnings per share

 

€

1.93

1.77

1.51

0.66

5.87

(XLS:) Download

Sales and earnings by quarter in 20172 (Million €)

 

 

 

Q1

Q2

Q3

Q4

Full year

1

Amortization of intangible assets and depreciation of property, plant and equipment (including impairments and reversals of impairments) excluding depreciation and amortization attributable to the discontinued oil and gas business

2

Quarterly results not audited

Sales

 

 

16,027

15,449

14,516

15,231

61,223

Income from operations before depreciation, amortization and special items

 

 

3,035

2,872

2,517

2,314

10,738

Income from operations before depreciation and amortization (EBITDA)

 

 

3,030

2,814

2,655

2,266

10,765

Depreciation and amortization1

 

 

738

764

831

845

3,178

Income from operations (EBIT)

 

 

2,292

2,050

1,824

1,421

7,587

Special items

 

 

(6)

(70)

122

(104)

(58)

EBIT before special items

 

 

2,298

2,120

1,702

1,525

7,645

Financial result

 

 

(149)

(162)

(184)

(210)

(705)

Income before income taxes

 

 

2,143

1,888

1,640

1,211

6,882

Income after taxes from continuing operations

 

 

1,626

1,433

1,260

1,273

5,592

Income after taxes from discontinued operations

 

 

146

131

149

334

760

Net income

 

 

1,709

1,496

1,336

1,537

6,078

Earnings per share

 

€

1.86

1.63

1.45

1.68

6.62

Adjusted earnings per share

 

€

1.97

1.78

1.40

1.29

6.44