In a weaker than expected market environment, BASF sales in the third quarter of 2015 were €17.4 billion, 5% below the level of the previous third quarter.
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EBITDA increased by €358 million to €2.9 billion, mainly due to higher depreciation. In contrast, income from operations (EBIT) before special items declined by €171 million to €1.6 billion.
In the Chemicals segment, EBIT before special items rose slightly, while it increased sharply in the Functional Materials & Solutions segment. In the remaining segments, earnings declined significantly.
The sharp drop in the price of oil led to lower prices (minus 8%), primarily in the Chemicals and Oil & Gas segments. Sales volumes were slightly lower (minus 1%) than in the previous third quarter.
Volumes in the chemicals business, which comprises the Chemicals, Performance Products and Functional Materials & Solutions segments, were below the level of the prior-year quarter, but they rose in the Agricultural Solutions and Oil & Gas segments. Currency effects were positive (plus 4%) in every division except Crop Protection.
Special items in EBIT totaled €286 million in the third quarter of 2015, compared with minus €32 million in the third quarter of 2014. This was particularly the result of gains from the asset swap with Gazprom concluded at the end of September 2015.
Compared with the previous third quarter, EBIT grew by €147 million to €1.9 billion. Net income rose by €195 million to €1.2 billion. Earnings per share were €1.31 in the third quarter of 2015, compared with €1.11 in the same quarter of 2014.
In the first nine months of 2015, sales of BASF Group were around €56.6 billion, 1% higher than in the same period of the previous year. EBIT before special items declined by €182 million to €5.7 billion. At €5.9 billion, EBIT in the first nine months of 2015 reached the same level as in the same period of the previous year.
Cash provided by operating activities in the ï¬rst three quarters of 2015 rose year-on-year by €3.6 billion to €8.5 billion. This was predominantly the result of a decline in inventories. ■