|
 |
|
|
|||
|
 |
|
Oct. 26, 2022 Source: BASF news release *Sales of €21.9 billion up 12 percent over prior-year quarter *EBIT before special items of €1.3 billion down by €517 million versus prior-year quarter *Earnings improve considerably in downstream segments, decline significantly in Chemicals and Materials segments *Cash flows from operating activities increased to €2.3 billion compared with €1.9 billion in the third quarter of 2021 *Unchanged outlook for 2022: Expected sales of between €86 billion and €89 billion, EBIT before special items of between €6.8 billion and €7.2 billion "Despite the continued high raw materials and energy prices, BASF achieved solid earnings in the third quarter," said Dr. Martin Brudermüller, Chairman of the Board of Executive Directors of BASF SE, presenting the results for the third quarter of 2022 together with Chief Financial Officer Dr. Hans-Ulrich Engel. At €21.9 billion, sales were 12 percent higher than in the prior-year quarter. The sales increase was mainly driven by much higher prices in almost all segments. Only the Surface Technologies segment recorded lower price levels as a result of lower precious metal prices. Currency effects had a positive impact in all segments. Sales growth was also boosted by portfolio effects. Sales development was significantly dampened by lower volumes in all segments except for Agricultural Solutions. Income from operations (EBIT) before special items declined by €517 million compared with the third quarter of 2021 to €1.3 billion. "Our downstream segments Surface Technologies, Agricultural Solutions, Nutrition & Care and Industrial Solutions increased their earnings considerably," said Brudermüller. However, earnings in the Chemicals and Materials segments declined significantly compared with the very high levels of the prior-year quarter. At €1.3 billion, EBIT was considerably below the prior-year quarter (€1.8 billion). This figure includes income from integral companies accounted for using the equity method, which declined by €124 million to €76 million, mainly due to the lower earnings contribution from BASF-YPC Company Ltd., Nanjing, China. Compared with the third quarter of 2021, income from operations before depreciation, amortization and special items (EBITDA before special items) decreased by €446 million to €2.3 billion and EBITDA declined by €474 million to €2.3 billion. Net income from shareholdings rose by €16 million compared with the prior-year quarter to €102 million. Income from non-integral companies accounted for using the equity method included special charges for impairments of approximately €740 million recognized in connection with damages to the Nord Stream 1 pipelines, in which BASF holds an indirect interest via Wintershall Dea AG. The operational result (after tax) of Wintershall Dea attributable to BASF rose by €533 million compared with the third quarter of 2021 to €630 million. Overall, income before income taxes decreased by €538 million compared with the prior-year quarter to €1.2 billion in the third quarter of 2022. Net income declined by €344 million compared with the third quarter of 2021 to €909 million. Cash flows from operating activities amounted to €2.3 billion in the third quarter of 2022, €405 million better than in the prior-year quarter. Free cash flow amounted to €1.3 billion in the third quarter of 2022, €218 million higher than in the prior-year quarter. To read the entire report click here. Tweet |
|
|
|
|
|
|
|
|
|||||||||||||
