Results of Operations

We increased sales by €1,157 million compared with the first quarter of 2019 to €16,753 million. This was primarily driven by higher volumes, especially in the Surface Technologies and Agricultural Solutions segments and in Other. Lower prices in all other segments were more than offset by a significantly higher price level in the Surface Technologies segment due to the rise in precious metal prices, meaning that overall, prices had a positive impact on sales. Positive currency effects and portfolio effects in the Materials segment from the polyamide business acquired from Solvay also contributed to sales growth.

Factors influencing BASF Group sales in Q1 2020

Income from operations (EBIT) before special items¹ declined by €110 million year on year to €1,640 million. This was mainly attributable to significantly lower contributions from the Chemicals and Materials segments and from Other. By contrast, we increased EBIT before special items in all other segments. The Surface Technologies and Nutrition & Care segments saw a considerable improvement in EBIT before special items, and the Agricultural Solutions and Industrial Solutions segments posted slight growth.

Special items in EBIT totaled minus €184 million in the first quarter of 2020, compared with €29 million in the prior-year quarter. These mainly related to integration costs for the businesses acquired from Solvay and to various restructuring measures. In the prior-year quarter, income from divestitures led to positive special items overall.

EBIT² declined by €323 million compared with the first quarter of 2019 to €1,456 million. Income from operations before depreciation, amortization and special items (EBITDA before special items)³ decreased by €63 million to €2,579 million and EBITDA³ declined by €342 million to €2,428 million in the same period.

The decline in net income from shareholdings to minus €168 million is primarily attributable to the initial inclusion of Wintershall Dea. Its contribution to earnings was negative, mainly as a result of the low oil and gas prices and currency-related deferred tax expenses. The financial result improved to minus €88 million. The main driver here was the €79 million improvement in the other financial result due to the higher fair values of derivatives.

Income before income taxes decreased by €356 million to €1,200 million. The tax rate rose from 25.3% to 26.6%, due, among other factors to negative income from companies accounted for using the equity method.

Income after taxes from continuing operations declined by €282 million compared with the prior-year quarter to €881 million. Income after taxes from discontinued operations decreased by €255 million to €22 million. In the first quarter of 2019, this figure still contained the earnings generated by our oil and gas activities (€274 million). Income after taxes improved in the discontinued construction chemicals business.

Noncontrolling interests amounted to minus €18 million after minus €34 million in the prior-year quarter, mainly because the shares in the gas transportation companies are no longer included in this figure.

Net income decreased by €521 million to €885 million.

Earnings per share in the first quarter of the year were €0.96, compared with €1.53 in the prior-year quarter. Earnings per share adjusted for special items and amortization of intangible assets amounted to €1.36 (first quarter of 2019: €1.70).