Regional Results

Sales by region

Location of company

Europe

• Sales down 6% compared with 2019 at €24,223 million
• EBIT declines €3,130 million to –€1,005 million

Sales at companies located in Europe decreased by 6% year on year to €24,223 million. This was mainly due to considerably lower sales in the Chemicals and Materials segments. Sales also declined considerably in Other and in the Industrial Solutions and Agricultural Solutions segments, and slightly in the Nutrition & Care segment. Considerable sales growth in the Surface Technologies segment was unable to compensate for this.

Sales performance was primarily driven by lower volumes in almost all segments and in Other, but especially in the Materials segment as a result of weaker demand from the automotive industry. Price levels declined in the Chemicals segment in particular, especially for steam cracker products due to higher product availability on the market and lower raw materials prices, as well as in the Materials segment as a result of lower isocyanates prices. By contrast, prices in the Surface Technologies segment were well above the prior-year level. Negative currency effects also contributed to the sales decrease. Portfolio effects in the Materials segment from the acquisition of Solvay’s integrated polyamide business had an offsetting impact.

At –€1,005 million, EBIT was down €3,130 million from the previous year. All segments and Other recorded lower contributions, but especially the Materials segment. This was largely attributable to impairments.

We are strengthening our position in the European market with investments such as the construction of a precursor plant for cathode active materials in Harjavalta, Finland, and the construction of a cathode active materials plant in Schwarzheide, Germany. With these investments, BASF aims to expand its position as a leading and innovative provider of battery materials. The two plants are scheduled for startup in 2022 and will be able to equip around 400,000 fully electric mid-size vehicles per year.

North America

• Sales of €16,440 million at prior-year level
• EBIT declines €893 million to –€201 million

Sales at companies located in North America were on a level with the previous year, at €16,440 million. In local currency terms, they rose by 2%. Considerable sales growth in the Surface Technologies segment and slightly higher sales in the Nutrition & Care segment were offset by considerable sales decreases in the Chemicals, Materials and Industrial Solutions segments, as well as slightly lower sales in the Agricultural Solutions segment.

Sales performance was positively impacted by an increase in prices on the back of significantly higher price levels in the Surface Technologies segment. This more than compensated for lower prices in all other segments. Sales were weighed down by lower volumes, especially in the Surface Technologies, Materials, Chemicals and Industrial Solutions segments. This was mainly the result of lower demand from the automotive industry due to the effects of the coronavirus pandemic and the unplanned outage at the steam cracker in Port Arthur, Texas. Sales were also reduced by negative currency effects.

At –€201 million, EBIT was down €893 million from the prior-year figure due to significantly lower contributions from almost all segments, but especially from the Surface Technologies segment. EBIT includes special charges, mainly from impairments in the Surface Technologies, Agricultural Solutions and Chemicals segments. In addition, the contribution from the Industrial Solutions segment was lower, after the transfer of the paper and water chemicals business to the Solenis group had positively impacted the segment’s earnings in the previous year. By contrast, EBIT rose considerably in Other and in the Nutrition & Care segment.

Asia Pacific

• Sales growth of 11% to €14,895 million
• EBIT down 29% to €768 million

Sales at companies headquartered in the Asia Pacific region rose by 11% to €14,895 million in 2020. In local currency terms, sales were 14% above the prior-year level. This was largely due to considerably higher sales in the Surface Technologies segment. Sales also rose considerably in the Agricultural Solutions segment, while the Materials segment recorded a slight improvement. By contrast, sales declined considerably in the Industrial Solutions segment and slightly in the Chemicals segment. Sales were at prior-year level in the Nutrition & Care segment.

The sales performance was primarily the result of higher volumes in all segments, but especially in the Surface Technologies and Agricultural Solutions segments. Higher prices overall, mainly attributable to the Surface Technologies segment, also contributed to the increase in sales. By contrast, prices in the Materials, Industrial Solutions, Chemicals and Nutrition & Care segments were below the prior-year level. Sales were buoyed by portfolio effects, especially in the Materials segment following the acquisition of the integrated polyamide business from Solvay. Negative currency effects had an offsetting impact.

EBIT in the region declined by €314 million compared with 2019 to €768 million, primarily as a result of impairments. This was largely due to the considerable decrease in EBIT in the Chemicals and Surface Technologies segments. The Industrial Solutions segment’s contribution was also significantly lower. By contrast, the Materials, Nutrition & Care and Agricultural Solutions segments posted much higher earnings.

Even in the coronavirus pandemic, the Asia Pacific region remains the strongest growth driver in the chemical industry. Our investments in local production plants and in research and development meet the needs of our local customers and lay the foundation for future growth in the Asian market. Following the official groundbreaking in November 2019, we started construction of the first plants at the planned integrated Verbund 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 also expanded our dispersions portfolio at our site in Huizhou, China, to better serve the fast-growing packaging industry in southern China. At the Nanjing site, in 2020, we increased the production capacity for neopentyl glycol to meet our Chinese customers’ demands for environmentally friendly automotive refinish coatings.

South America, Africa, Middle East

• Sales down 6% at €3,591 million
• EBIT declines 18% to €247 million

Sales at companies located in the region South America, Africa, Middle East declined by 6% year on year to €3,591 million. In local currency terms, by contrast, they rose by 22%. The decline in sales in euros was mainly due to considerably lower sales in the Surface Technologies segment. Sales were also considerably below the prior-year level in the Industrial Solutions segment and decreased slightly in the Agricultural Solutions segment. By contrast, the Materials segment recorded considerable sales growth, while the Chemicals and Nutrition & Care segments posted slight increases.

Sales performance in South America was primarily attributable to negative currency effects. Higher price levels in all segments except Chemicals had an offsetting effect. We also increased sales volumes overall. Higher volumes, particularly in the Agricultural Solutions segment, more than compensated for lower sales volumes in the Surface Technologies segment due to the effects of the coronavirus pandemic. Portfolio effects, especially in the Materials segment from the acquisition of Solvay’s integrated polyamide business, had a positive impact on sales.

Companies located in Africa and in the Middle East recorded a considerable sales decrease overall. Higher prices were unable to offset lower volumes and negative currency effects.

At €247 million, EBIT in the region South America, Africa, Middle East was down €55 million from the prior-year figure. This was due to lower contributions from Other and from the Agricultural Solutions, Industrial Solutions, Surface Technologies and Nutrition & Care segments. EBIT improved considerably in the Materials and Chemicals segments.