Results of Operations

At €19,669 million, sales were €5,858 million higher than in the prior-year quarter. Higher prices in all segments, especially in Chemicals, Surface Technologies and Materials, were the primary factors for this growth. It was also due to a significant increase in volumes in almost all segments. Currency effects had a slightly positive impact on sales. Negative portfolio effects, particularly in the Industrial Solutions segment following the sale of the global pigments business, had an offsetting effect.

Factors influencing BASF Group sales in Q3 2021

Compared with the third quarter of 2020, income from operations (EBIT) before special items¹ rose by €1,284 million to €1,865 million. This was mainly driven by the significantly higher EBIT before special items in the Chemicals segment. The significant earnings increases in the Materials and Industrial Solutions segments as well as in Other also drove earnings. By contrast, earnings contributions from the Agricultural Solutions, Surface Technologies and Nutrition & Care segments declined considerably.

Special items in EBIT amounted to –€43 million in the third quarter of 2021. Expenses resulted primarily from restructuring measures, divestitures and integration costs. Other income totaling €42 million had an offsetting effect. Special items in the previous year were –€3,219 million, mainly from impairments in all segments as well as restructuring measures.

EBIT² amounted to €1,822 million, considerably above the prior-year quarter (–€2,638 million). This figure includes income from integral companies accounted for using the equity method, which rose by €144 million to €200 million, due largely to the higher earnings contribution from BASF-YPC Company Ltd., Nanjing, China.

Compared with the third quarter of 2020, income from operations before depreciation, amortization and special items (EBITDA before special items)³ increased by €1,229 million to €2,771 ­million and EBITDA³ rose by €1,685 million to €2,729 million.

The €133 million improvement in net income from shareholdings was primarily attributable to the earnings contribution from Wintershall Dea AG amounting to €97 million (Q3 2020: –€3 million), as well as to the nonrecurrence of the earnings contribution from the non-integral equity-accounted shareholding in Solenis (Q3 2020: –€18 million), which has been classified as held for sale since July 2021.

The €30 million decrease in financial result compared with the prior-year quarter mainly reflected the €27 million decrease in other financial result owing largely to higher interest expenses on income taxes.

Income before income taxes amounting to €1,777 million ­increased by €4,563 million compared with the third quarter of 2020, which had been significantly burdened by the aforementioned impairments. The tax rate was 19.9%.

Compared with the prior-year period, income after taxes from continuing operations rose by €3,601 million to €1,424 million. Income after taxes from discontinued operations amounting to –€43 million in the third quarter of 2021 resulted from expected purchase price adjustments for the divestiture of the construction chemicals business.

Income after taxes in the amount of €1,381 million included €1,253 million attributable to shareholders of BASF SE (Q3 2020: –€2,122 million). Noncontrolling interests amounted to €128 million compared with –€42 million in the prior-year period. The rise was due in particular to positive earnings contributions from BASF TOTAL Petrochemicals LLC, Port Arthur, Texas, and from BASF Petronas Chemicals Sdn. Bhd., Petaling Jaya, Malaysia.

Earnings per share amounted to €1.36 in the third quarter of 2021 (Q3 2020: –€2.31). Earnings per share adjusted³ for special items and amortization of intangible assets amounted to €1.56 (Q3 2020: €0.60).