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FULL YEAR: BASF'S SALES EVEN, EARNINGS DOWN 11%
Source: BASF news release

To read the entire report click here.

Sales of €59.1 billion in the full year 2020 were almost stable. Negative currency and volume effects were nearly offset by higher prices and positive portfolio effects.

EBITDA before special items was €7.4 billion, down by 11 percent versus the prior-year level. EBITDA came in at €6.5 billion, compared with €8.2 billion in 2019. EBIT before special items was €3.6 billion in the full year 2020, down by 23 percent compared with the previous year.

Owing to the effects of the pandemic, all segments posted lower earnings - with one exception: The Industrial Solutions segment achieved EBIT before special items on a level with the year 2019. The earnings decline at the BASF Group level was attributable in particular to significantly lower contributions from the upstream businesses in the Chemicals and Materials segments. The sharp drop in demand from the automotive industry especially weighed on earnings development in the Surface Technologies segment.

BASF Group outlook for 2021

BASF expects the global economy to recover in 2021 after the sharp downturn resulting from the coronavirus pandemic. However, uncertainty about future developments remains exceptionally high. The company's forecast therefore includes wide ranges to account for the risk of renewed significant disruptions to global supply chains and the associated negative effects on the entire economy. Brudermüller: "However, we are confident that without such negative impacts, we will be able to achieve earnings at the upper end of the forecast range."

BASF's forecast assumes growth in customer industries, especially the automotive industry. The global economy should see significant growth of 4.3% compared with 2020. Global chemical production is expected to expand by 4.4%, well above the prior-year level. The company anticipates an average oil price of $50 for a barrel of Brent crude and an exchange rate of $1.18 per euro.


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