📋 Tender Overview
BASF generated sales of 59.3 billion in the 2019 business year the slight decline in sales compared with the previous year resulted from lower volumes and prices. Income from operations EBIT before special items was 4.5 billion down by 1.7 billion from the prior-year level as a result of lower contributions from the Materials and Chemicals segments.Our company performed well even in difficult times. 2019 was a challenging year with strong global economic headwinds said BASFs Chairman of the Board of Executive Directors Dr. Martin Brudermller who presented the 2019 financial figures together with Chief Financial Officer Dr. Hans-Ulrich Engel. The trade conflicts between the United States and China had a negative impact. Key sales markets developed more slowly. This was intensified by the uncertainties related to Brexit. Growth in industrial and chemical production was significantly slower than expected. Demand from many key customer industries especially from the automotive sector declined considerably.We increased our earnings in all downstream segments despite the difficult market environment. Unfortunately this could not offset the decline in the basic chemicals business said Brudermller. EBIT before special items in the Materials and Chemicals segments fell by 2.2 billion to 1.8 billion. The sharp drop in isocyanate prices lower cracker margins the scheduled cracker turnarounds and overall weaker demand had a significant negative impact here.By contrast in the downstream segments BASF saw a considerable year-on-year improvement The Industrial Solutions segment increased EBIT before special items considerably in both divisions primarily due to lower fixed costs positive currency effects and higher margins. The Surface Technologies segment likewise saw a considerable improvement in EBIT before special items. In the Nutrition Care segment EBIT before special items increased slightly due to a considerable improvement in the contribution from the Care Chemicals division. The Agricultural Solutions segment significantly increased EBIT before special items. The assets and businesses acquired from Bayer performed very well. They contributed significantly to the increase in sales and earnings said Brudermller.In 2019 BASF Groups EBIT declined from 6.0 billion to 4.1 billion. EBITDA before special items decreased by 11 percent compared with 2018 to 8.2 billion. EBITDA amounted to 8.0 billion compared with 9.0 billion in 2018. Net income rose to 8.4 billion from 4.7 billion in the previous year. This contained a book gain of around 5.7 billion resulting from the deconsolidation of Wintershall following the merger with DEA.Sales and earnings development of the BASF Group in Q4 2019Sales in the fourth quarter of 2019 declined by 2 percent compared with the prior-year quarter to 14.7 billion. Volumes and prices each decreased by 1 percent. The portfolio effects resulting from the transfer of the business with paper and water chemicals to Solenis amounted to minus 1 percent. Currency effects had a slightly positive influence of plus 1 percent on sales development.EBIT before special items amounted to 765 million up by 23 percent compared with the fourth quarter of 2018. This increase was driven by significantly higher earnings in the Agricultural Solutions Nutrition Care Industrial Solutions and Surface Technologies segments. Overall these segments were able to more than compensate for the considerable decline in the Chemicals and Materials segments in the fourth quarter.Special items in EBIT amounted to minus 305 million. In the fourth quarter of 2018 the corresponding figure was minus 151 million. Special charges in the fourth quarter of 2019 were recorded in particular in Other and the Industrial Solutions segment. In Other these resulted from the implementation of the Excellence Program. The divestiture of the BASF pigments business led to one-off effects in the Industrial Solutions segment. EBIT declined by 2 percent in the fourth quarter of 2019 to 460 million.BASF Groups cash flows in 2019Cash flows from operating activities amounted to 7.5 billion representing a decline of 465 million versus 2018. Cash flows from investing activities in 2019 were minus 1.2 billion compared with minus 11.8 billion in the prior year. Payments made for intangible assets and property plant and equipment were slightly below the prior-year level at 3.8 billion. In 2019 payments received for divestitures were around 2.5 billion higher than in the prior year. This was mainly the result of cash inflows in connection with the merger of Wintershall and DEA. Payments made for acquisitions in 2019 amounted to 239 million compared with 7.4 billion in the previous year. In the previous year these mainly contained the payment of the purchase price to Bayer.Despite the considerable decline in cash flows from operating activities free cash flow amounted to around 3.7 billion compared with 4.0 billion in 2018.Fulfilling ambitious sustainability goalsBASF has set itself the target of CO2-neutral growth until 2030. This means the company aims to keep total greenhouse gas emissions from its sites and energy purchases steady at the 2018 level while increasing production.Compared with 2018 BASFs absolute greenhouse gas emissions in 2019 were down by 8 percent to 20 million metric tons. This is primarily attributable to shutdowns of large-scale plants for maintenance work among other reasons. In addition BASF updated energy supply agreements and implemented measures to increase energy efficiency and optimize processes.BASF expects that emissions in 2020 will increase to the 2018 level due in part to a lower number of planned turnarounds and the acquisition of Solvays polyamide business.
