Regional Results

Sales by region

Location of company

Income from operations by region

Location of company

Europe

• Sales down 7% compared with 2018 at €25,706 million
• EBIT declines 38% to €1,976 million

Sales at companies located in Europe declined by 7% year on year to €25,706 million. This was mainly due to considerably lower sales in the Chemicals and Materials segments. The Industrial Solutions segment also posted a considerable sales decrease, while Other and the Nutrition & Care segment saw slight declines. By contrast, sales rose considerably in the Surface Technologies and Agricultural Solutions segments.

Sales developments were driven by lower volumes and prices. Sales volumes declined in the Chemicals segment in particular due to the scheduled turnarounds of our steam crackers. The Materials segment also recorded lower volumes on the back of weaker demand from key industries. Price levels softened, mainly in the Chemicals segment due to lower raw materials prices for naphtha and butane, and in the Materials segment as a result of lower isocyanate prices. By contrast, prices in the Surface Technologies segment were well above the prior-year level. Sales were also positively impacted by portfolio effects in the Agricultural Solutions segment, while sales development in the Industrial Solutions segment was dampened by the transfer of BASF’s paper and water chemicals business to the Solenis group. Currency effects had a positive impact.

EBIT declined by €1,234 million compared with the previous year to €1,976 million. Almost all segments and Other recorded lower contributions, but especially Materials and Chemicals. EBIT improved considerably in the Industrial Solutions segment.

We further strengthened our position in the European market with investments, including the replacement of the acetylene plant in Ludwigshafen, Germany, with a modern, highly efficient plant and the feedstock flexibilization of our steam cracker in Antwerp, Belgium.

North America

• Sales growth of 3% to €16,420 million
• EBIT declines 13% to €692 million

Sales at companies located in North America rose by 3% compared with 2018 to €16,420 million. Growth was driven by the Agricultural Solutions and Surface Technologies segments. In local currency terms, sales declined by 2%.

The development was primarily attributable to portfolio effects in the Agricultural Solutions segment and positive currency effects in all segments. Prices were slightly higher overall: Price levels rose significantly in the Surface Technologies segment but declined markedly in the Chemicals and Materials segments in particular. Sales were negatively impacted by significantly lower volumes, especially in the Chemicals and Agricultural Solutions segments.

EBIT was down €102 million from the 2018 figure, at €692 million. Considerable earnings growth in the Agricultural Solutions, Surface Technologies and Industrial Solutions segments was unable to offset the considerable decline in the Chemicals, Materials and Nutrition & Care segments. EBIT includes a special charge from the impairment of project costs for a planned methane-to-propylene plant on the U.S. Gulf Coast.

We further strengthened our position in the region with the acquisition of significant businesses from Bayer in the areas of seeds and non-selective herbicides. We invest strategically in our production plants. For example, we are constructing a new MDI synthesis unit in Geismar, Louisiana. We started up a new production plant for engine coolants in Cincinnati, Ohio, and expanded our production capacities for automotive coatings in Tultitlán, Mexico. We are also expanding our capacities for ibuprofen in Bishop, Texas, and for resins in Greenville, Ohio.

Asia Pacific

• Sales 1% below previous year at €13,384 million
• EBIT declines 40% to €1,082 million

Sales at companies headquartered in the Asia Pacific region declined by 1% to €13,384 million in 2019. In local currency terms, sales were down 3% from the prior-year level. This was mainly due to lower sales in the Materials segment. Sales also decreased considerably in the Industrial Solutions and Chemicals segments. Considerable sales growth in the Surface Technologies, Nutrition & Care and Agricultural Solutions segments was unable to compensate for this.

The decline in sales was due to lower prices in almost all segments, but especially in the Materials segment. By contrast, prices in the Surface Technologies segment were well above the prior-year level. Currency effects had a positive impact across the board. We increased volumes slightly with higher sales volumes in the Nutrition & Care, Surface Technologies and Agricultural Solutions segments. Overall, portfolio measures did not have any impact. The transfer of BASF’s paper and water chemicals business to the Solenis group dampened developments in the Industrial Solutions segment, while the acquisition in the Agricultural Solutions segment had a positive impact on sales.

EBIT in the region declined by €711 million year on year to €1,082 million. This was primarily due to the considerable decrease in EBIT in the Materials segment. The contribution from the Chemicals segment was also significantly lower, while EBIT in the Agricultural Solutions segment was at the prior-year level. By contrast, EBIT rose considerably in the Industrial Solutions, Surface Technologies and Nutrition & Care segments.

We aim to further increase the share of local production in Asia Pacific. We again made progress toward this goal: In Nanjing, China, for example, we expanded the production capacity for intermediates. Our investments in production facilities as well as in research and development serve to bring products to market for our local and global customers in this fast-growing region. In late November 2019, the official groundbreaking ceremony was held for the first plants at the planned integrated Verbund chemical production site in Zhanjiang in the southern Chinese province of Guangdong. The first plants will produce engineering plastics and thermoplastic polyurethane (TPU) to serve the growing demand in various growth industries in Asia, including in the southern Chinese market. We are also evaluating the construction of a chemical complex in Mundra, India, in cooperation with ADNOC, Adani and Borealis.

South America, Africa, Middle East

• Sales growth of 14% to €3,806 million
• EBIT 71% higher at €302 million

Sales at companies located in the region South America, Africa, Middle East increased by 14% compared with 2018 to €3,806 million. In local currency terms, sales exceeded the prior-year figure by 18%. This was mainly due to considerable sales growth in the Agricultural Solutions segment. The Surface Technologies, Nutrition & Care and Chemicals segments also posted higher sales. Negative sales developments in the Industrial Solutions and Materials segments had an offsetting effect.

In South America, 2019 was a year dominated by economic and political challenges. Nevertheless, BASF increased sales volumes in all segments, especially in the Agricultural Solutions segment. This was primarily attributable to the positive contribution from the seed businesses acquired from Bayer. In the Nutrition & Care and Materials segments, sales volumes were likewise considerably above the prior-year level. A higher price level in all segments except Materials and Chemicals, particularly in the Agricultural Solutions segment, also contributed to sales growth. Portfolio effects had a positive impact on sales. This more than offset negative currency effects.

Companies in Africa and in the Middle East posted a slight sales decrease overall. Higher volumes could not completely offset lower prices and negative portfolio effects.

At €302 million, EBIT in the region South America, Africa, Middle East exceeded the prior-year figure by €125 million. We considerably improved earnings in almost all segments, especially in the Agricultural Solutions segment as a result of higher sales volumes, and in the Chemicals and Surface Technologies segments.