Results of Operations Compared with the third quarter of 2018, sales declined slightly by €375 million to €15,231 million. This was mainly attributable to lower prices in the Materials and Chemicals segments. In the Materials segment, the decrease was largely due to lower isocyanate prices. In the Chemicals segment, prices declined for steam cracker products in particular. Lower volumes in the Chemicals segment and negative portfolio effects in the Industrial Solutions segment contributed to the sales decrease. Sales were positively impacted by higher sales volumes in the Agricultural Solutions and Surface Technologies segments, as well as currency effects in all segments. Factors influencing BASF Group sales in Q3 2019 Income from operations (EBIT) before special items1 declined by €351 million year on year to €1,119 million. This was primarily due to significantly lower contributions from the Materials and Chemicals segments. By contrast, we considerably increased EBIT before special items in all other segments. Special items in EBIT totaled €257 million in the third quarter of 2019, compared with minus €75 million in the prior-year period. Special income from the sale of BASF’s share of the Klybeck site in Basel, Switzerland, more than offset special charges for restructuring measures, for the integration of the significant businesses acquired from Bayer in the third quarter of 2018, and for divestitures. At €1,376 million, EBIT2 was only slightly lower than in the prior-year quarter (€1,395 million). Income from companies accounted for using the equity method declined from €94 million to €83 million. Since February 1, 2019, this has also included BASF’s share in Solenis’ net income and since May 1, 2019, the corresponding figure for Wintershall Dea. For more information on the transfer of the paper and water chemicals business to Solenis, see the BASF Report 2018, Events After the Reporting PeriodFor more information on the merger of the oil and gas businesses of BASF and DEA, see the Half-Year Financial Report 2019 Compared with the third quarter of 2018, income from operations before depreciation, amortization and special items (EBITDA before special items)3 declined by €179 million to €2,084 million. EBITDA3 rose by €149 million to €2,339 million. Q3 EBITDA before special items (Million €) 2019 2018 a Excluding depreciation, amortization, impairments and reversals of impairments attributable to the discontinued oil and gas business EBIT 1,376 1,395 – Special items 257 (75) EBIT before special items 1,119 1,470 + Depreciation and amortization before special itemsa 965 787 + Impairments and reversals of impairments on intangible assets and property, plant and equipment before special itemsa 0 6 Depreciation, amortization, impairments and reversals of impairments on intangible assets and property, plant and equipment before special items 965 793 EBITDA before special items 2,084 2,263 Q3 EBITDA (Million €) 2019 2018 a Excluding depreciation, amortization, impairments and reversals of impairments attributable to the discontinued oil and gas business EBIT 1,376 1,395 + Depreciation and amortizationa 965 787 + Impairments and reversals of impairments on intangible assets and property, plant and equipmenta (2) 8 Depreciation, amortization, impairments and reversals of impairments on intangible assets and property, plant and equipment 963 795 EBITDA 2,339 2,190 The financial result amounted to minus €170 million, after minus €138 million in the prior-year quarter. This development was mainly driven by the lower interest result, due among other factors to higher interest expenses for financial indebtedness. The decrease in the other financial result and net income from shareholdings also contributed here. Income before income taxes declined by €51 million to €1,206 million. The tax rate rose from 17.9% to 22.5%, due among other factors to lower deferred tax income. Income after taxes from continuing operations decreased by €97 million to €935 million. No income after taxes from discontinued operations has been recognized since the merger of the oil and gas activities of Wintershall and DEA on May 1, 2019. In the prior-year quarter, income after taxes from discontinued operations amounted to €235 million. Noncontrolling interests decreased by €43 million to minus €24 million, mainly due to lower isocyanate margins and the deconsolidation of the Wintershall companies in the second quarter of 2019 following the merger of the oil and gas activities of Wintershall and DEA. Net income declined by €289 million to €911 million. Earnings per share amounted to €1.00 in the third quarter of 2019 (third quarter of 2018: €1.31). Earnings per share adjusted4 for special items and amortization of intangible assets amounted to €0.86 (third quarter of 2018: €1.51). Q3 adjusted earnings per share (Million €) 2019 2018 Income after taxes 935 1,267 – Special items 257 (75) + Amortization, impairments and reversals of impairments on intangible assets 175 156 – Amortization, impairments and reversals of impairments on intangible assets contained in special items − − – Adjustments to income taxes 16 60 – Adjustments to income after taxes from discontinued operations − (17) Adjusted income after taxes 837 1,455 – Adjusted noncontrolling interests 42 68 Adjusted net income 795 1,387 Weighted average number of outstanding sharesin thousands 918,479 918,479 Adjusted earnings per share€ 0.86 1.51 1 For an explanation of this indicator, see Value-Based Management in the BASF Report 2018 2 The calculation of income from operations (EBIT) is shown in the Statement of Income in this quarterly statement. 3 For an explanation of this indicator, see Results of Operations in the BASF Report 2018 4 For an explanation of this indicator, see Results of Operations in the BASF Report 2018 back next