• Login
    • Join
  • FOLLOW:
  • Subscribe Free
    • Magazine
    • eNewsletter
    Checkout
    • Magazine
    • News
    • Research
    • Markets & Technologies
    • Raw Materials
    • Top Companies
    • Directories
    • Jobs
    • Events
    • Microsites
    • More
  • Magazine
  • News
  • Research
  • Markets & Technologies
  • Raw Materials
  • Top Companies
  • Directories
  • Jobs
  • Events
  • Microsites
  • Current / Back Issues
    Features
    Business Corner
    Editorial
    Digital Edition
    eNewsletter Archive
    Our Team
    Editorial Guidelines
    Subscribe Now
    Advertise Now
    World Reports
    eBook
    Top Features
    Biocides Market Outlook - 2027

    Lab & Testing Equipment Directory

    Aerospace Coatings

    Resins Update

    Coatings World Q&A: Eileen Weber of allnex
    Breaking News
    Online Exclusives
    Distributor News
    Financial News
    Paint & Coatings Manufacturer News
    People In the News
    Price Increases
    Product News
    Raw Materials & Equipment
    Video Bites
    Suppliers News
    Live From Shows
    Top News
    PPG Sets Goals to Reduce Greenhouse Gas Emissions, Unveils 2021 ESG Report

    Birla Carbon to Present Sustainable Carbon-based Solutions at PaintIndia 2022

    BTC Europe, NXTLEVVEL Biochem to Distribute Biobased & Biodegradable Solvents in Europe

    Nouryon Issues 2021 Sustainability Report

    PPG’s Diane Kappas Recognized as ‘Woman of Influence’ by Pittsburgh Business Times
    Top Companies report
    Market Research
    White Papers / Tech Papers
    Technical Papers
    Product Spec Sheets
    World Reports
    Adhesives and Sealants
    Aerospace Coatings
    Architectural Coatings
    Automotive Coatings
    Automotive Refinish
    Business Operation
    Color Trends & Forecast
    Construction Chemicals
    Corrosion Control
    Industrial Coatings
    Laboratory Equipment
    Marine Coatings
    Market Trends & Forecast
    Powder Coatings
    Production Equipment
    Radcure Coatings
    Special Purpose Coatings
    Wood Coatings
    "Green" Coatings

    BEHR Launches COPPER FORCE Interior Paint

    BASF Launches Ultradur B4335G3 HR HSP

    Sika Acquires United Gilsonite Laboratories

    Highlands and Rust-Oleum Announce Partnership

    PPG ENVIROCRON LUM Retroreflective Coating Illuminates New Lyft E-bikes
    Additives
    Binders
    Pigments
    Solvents

    Birla Carbon to Present Sustainable Carbon-based Solutions at PaintIndia 2022

    BTC Europe, NXTLEVVEL Biochem to Distribute Biobased & Biodegradable Solvents in Europe

    Nouryon Issues 2021 Sustainability Report

    BASF to Increase Prices for Select Polyalcohols in North and South America

    AGM Secures Exclusive Distribution Agreement with Indian Partner, Imkemex
    Company Capabilities
    Buyers Guide
    Distributor Guide
    Add New Company
    International Buyers Guide Companies
    W. R. Grace & Co.

    Shepherd Color Company, The

    Pilot Chemical Company

    Clariant Additives

    Siltech Corporation
    Industry Events
    Webinars
    Live From Show Event
    Top Events
    Utech Las Americas 2022

    CPCA Annual Conference

    PAINTINDIA 2022 Exhibition

    Southern Society for Coatings Technology Annual Meeting and Technical Conference

    UTECH Middle East/Africa Foam & Polyurethane Expo
    Companies
    White Papers/Tech Papers
    Product Spec Sheets
    Equipment
    Literature/Brochures
    Videos
    International Buyers Guide Companies
    W. R. Grace & Co.

    Shepherd Color Company, The

    Pilot Chemical Company

    Clariant Additives

    Siltech Corporation
    • Magazine
      • Current / Back Issues
      • Features
      • Editorial
      • Business Corner
      • Digital Edition
      • eNewsletter Archive
      • Editorial Guidelines
      • Subscribe Now
      • Advertise Now
    • Breaking News
    • Directories
      • Buyers Guide
      • Distributor Guide
      • Corporate Capabilities
      • Trade Associations
      • Add Your Company
    • Markets & Technologies
      • Adhesives and Sealants
      • Aerospace Coatings
      • Architectural Coatings
      • Automotive Coatings
      • Automotive Refinish
      • Business Operation
      • Color Trends & Forecast
      • Construction Chemicals
      • Corrosion Control
      • Industrial Coatings
      • Laboratory Equipment
      • Marine Coatings
      • Market Trends & Forecast
      • Powder Coatings
      • Production Equipment
      • Radcure Coatings
      • Special Purpose Coatings
      • Wood Coatings
      • "Green" Coatings
    • Raw Materials
      • Additives
      • Binders
      • Pigments
      • Solvents
    • World Reports
      • Africa Report
      • India/Asia Pacific Report
      • China Report
      • Europe Report
      • Latin America Report
      • Market Research
      • Russian Report
    • Top Companies
    • Online Exclusives
    • Slideshows
    • Experts Opinions
    • Blog
    • eBook
    • Infographics
    • Videos
    • Podcasts
    • Whitepapers
    • Jobs
    • Microsites
      • Companies
      • White Papers/Tech Papers
      • Product Spec Sheets
      • Equipment
      • Literature/Brochures
      • Videos
    • Events
      • Industry Events
      • Live From Show Event
      • Webinars
    • About Us
      • About Us
      • Contact Us
      • Advertise With Us
      • Privacy Policy
      • Terms of Use
    Breaking News

    BASF Group Increases EBIT Before Special Items Compared to 2Q 2020

    Outlook 2020: Sales of between €57 billion and €58 billion.

    Related CONTENT
    • Miwon Specialty Chemicals Co. Ltd.
    • Revelli Chemicals Inc.
    • BASF and CATL Sign Agreement to Accelerate the Achievement of Global Carbon Neutrality
    • BASF's Coatings Division Employs Covestro's Ultra Line of Coating Hardeners
    • Azelis Expands Distribution Partnership with BASF's 3-D Printing Solutions
    Coatings World staff10.28.20

    In an environment that continues to be shaped by the global economic impact of the coronavirus pandemic, BASF Group’s income from operations (EBIT) before special items rose considerably compared with the previous quarter: At €581 million in the third quarter of 2020, it was €355 million higher than in the second quarter of 2020. 

     

    “This significant increase was mainly driven by good business development in September,” said Dr. Martin Brudermüller, chairman of the Board of Executive Directors of BASF SE.

     

    On Oct. 9, BASF had already published preliminary figures for the third quarter 2020, and released an outlook for the full year 2020. In connection with the publication of the Quarterly Statement for the third quarter of 2020, Brudermüller and CFO Dr. Hans-Ulrich Engel provided further details.

     

    BASF Group sales of €13.8 billion were down slightly by €745 million compared with the third quarter of 2019. 

     

    This was mainly driven by negative currency effects in all segments, but especially in the Agricultural Solutions and Surface Technologies segments. 

     

    Lower volumes, particularly in the Chemicals segment due to the unplanned outage at the steam cracker in Port Arthur, Texas, also contributed to the sales decrease. Higher price levels overall, primarily due to higher precious metal prices in the Surface Technologies segment, had an offsetting effect. 

     

    Portfolio effects, especially in the Materials segment from the acquisition of Solvay’s integrated polyamide business, likewise had a positive impact on sales. Compared with the second quarter of 2020, sales increased by €1.1 billion.

     

    EBIT before special items declined considerably year on year, by €475 million to €581 million. 

     

    This was mainly attributable to a considerably lower contribution from the Chemicals segment. EBIT before special items also declined considerably in the Nutrition & Care segment, Other, and in the Materials and Agricultural Solutions segments. The Industrial Solutions and Surface Technologies segments posted slight decreases.

     

    Special items in EBIT amounted to minus €3.2 billion in the third quarter of 2020. These are primarily related to impairments totaling €2.8 billion in all segments due to the economic effects of the coronavirus pandemic and to restructuring measures. 

     

    In addition, provisions of €313 million were recognized for the realignment of the Global Business Services unit. EBIT amounted to minus €2.6 billion, considerably below the prior-year quarter (€1.3 billion).

     

    Compared with the third quarter of 2019, income from operations before depreciation, amortization and special items (EBITDA before special items) decreased by €438 million to €1.5 billion. EBITDA declined by €1.2 billion to €1 billion.

     

    Net income decreased to minus €2.1 billion, compared with €911 million in the prior-year quarter. Earnings per share amounted to minus €2.31 in the third quarter of 2020 (Q3 2019: €1.00). Earnings per share adjusted for special items and amortization of intangible assets amounted to €0.60 (Q3 2019: €0.89).

     

    Cash flows from operating activities amounted to €2.1 billion in the third quarter of 2020, €102 million above the figure for the prior-year quarter despite the €3 billion decline in net income. The decrease in net income was largely attributable to the non-cash-effective impairments. Free cash flow rose from €1.1 billion in the prior-year quarter to €1.4 billion as a result of higher cash flows from operating activities in conjunction with lower payments made for property, plant and equipment and intangible assets.

     

    Developments by region

    Sales at BASF companies located in Europe declined by 12% compared with the third quarter of 2019. This was primarily due to lower volumes, especially in Other and in the Materials segment. Compared with the prior-year quarter, sales in North America declined by 6%. This was mainly driven by lower volumes, especially in the Chemicals segment due to the unplanned outage at the steam cracker in Port Arthur, Texas. 

     

    Compared with the third quarter of 2019, BASF improved sales in the Asia Pacific region by 10%. This was largely attributable to higher volumes in almost all segments. In the South America, Africa, Middle East region, sales were down 9% from the prior-year quarter. This was primarily due to negative currency effects in all segments, especially in the Agricultural Solutions segment.

     

    BASF Group outlook for 2020

    In the third quarter of 2020, the global industrial economy recovered from a sharp downturn in the previous quarter. However, global production levels were still around 3% lower than in the prior-year quarter. 

     

    The automotive industry, which was particularly strongly affected by the production closures in the second quarter of 2020, was still down around 2% from the prior-year period in the third quarter of 2020. 

     

    Demand for durable consumer goods picked up. Demand for consumables such as food and care products, some of which saw stronger demand as a result of the pandemic, gradually returned to normal. Following the dynamic recovery effects in the third quarter, momentum is expected to slow in the remaining months of the year.

     

    BASF’s assessment of the global economic environment in 2020 is therefore as follows (figures rounded to the nearest half a percentage point):

    • Growth in gross domestic product: –5%
    • Growth in industrial production: –5%;
    • Growth in chemical production: –2.5%;
    • Average euro/dollar exchange rate of $1.15 per euro;
    • Average annual oil price (Brent crude) of $40 per barrel


    BASF’s forecast assumes that severe restrictions on economic activity to contain the coronavirus pandemic, such as lockdowns, are not reintroduced. For the fourth quarter of 2020, BASF now expects a further improvement in the BASF Group’s EBIT before special items compared with the third quarter of 2020.

     

    For the full year 2020, the BASF Group expects a slight decline in sales compared with the previous year, mainly due to weaker demand as a consequence of the coronavirus pandemic. 

     

    BASF anticipates a considerable decline in EBIT before special items for 2020. As well as weaker demand, the company expects pressure on margins to continue, especially for basic chemicals, which will be partially offset by fixed cost savings.

     

    For the 2020 business year, BASF, therefore, expects sales of €57 billion to €58 billion, EBIT before special items of between €3.0 billion and €3.3 billion and a return on capital employed (ROCE) of between 0% and 1%.

    Suggested For You
    Miwon Specialty Chemicals Co. Ltd. Miwon Specialty Chemicals Co. Ltd.
    Revelli Chemicals Inc. Revelli Chemicals Inc.
    BASF and CATL Sign Agreement to Accelerate the Achievement of Global Carbon Neutrality BASF and CATL Sign Agreement to Accelerate the Achievement of Global Carbon Neutrality
    BASF BASF's Coatings Division Employs Covestro's Ultra Line of Coating Hardeners
    Azelis Expands Distribution Partnership with BASF Azelis Expands Distribution Partnership with BASF's 3-D Printing Solutions
    BASF, SINOPEC to Expand Verbund Site in Nanjing, China BASF, SINOPEC to Expand Verbund Site in Nanjing, China
    Russian Coatings JSC Russian Coatings JSC
    Arkema Releases Second-quarter 2021 Results  Arkema Releases Second-quarter 2021 Results
    Top Companies Report Top Companies Report
    Axalta Releases Second Quarter 2021 Results Axalta Releases Second Quarter 2021 Results
    BASF Reports Strong Second Quarter BASF Reports Strong Second Quarter
    Russian Coatings Overcomes Challenges, Enjoys Growth in 2020 Russian Coatings Overcomes Challenges, Enjoys Growth in 2020
    Shortlist Announced for the British Coatings Federation’s 2021 Awards Shortlist Announced for the British Coatings Federation’s 2021 Awards
    Agenda Announced for Pigment and Color Science Forum 2021 Agenda Announced for Pigment and Color Science Forum 2021
    BASF CEO Martin Brudermuller to Receive 2021 ICIS CEO of the Year Award BASF CEO Martin Brudermuller to Receive 2021 ICIS CEO of the Year Award

    Related Content

    • Miwon Specialty Chemicals Co. Ltd.

      ...
      Robert O'Toole, VP/Dir 10.29.21

    • Revelli Chemicals Inc.

      ...
      John Revelli, vp 10.28.21

    • Breaking News | Industry News
      BASF and CATL Sign Agreement to Accelerate the Achievement of Global Carbon Neutrality

      BASF and CATL Sign Agreement to Accelerate the Achievement of Global Carbon Neutrality

      The partnership supports both companies’ commitment to global carbon neutrality and CATL’s localization strategy in Europe.
      09.17.21


    • Additives | Automotive Refinish | Breaking News | Paint & Coatings Manufacturer News
      BASF

      BASF's Coatings Division Employs Covestro's Ultra Line of Coating Hardeners

      BASF Coatings and collision centers benefit from simple 1:1 replacement.
      09.15.21

    • Breaking News | Distributor News
      Azelis Expands Distribution Partnership with BASF

      Azelis Expands Distribution Partnership with BASF's 3-D Printing Solutions

      Azelis to expand distribution partnership with Forward AM, the brand of BASF 3D Printing Solutions, into India, Australia and New Zealand.
      09.06.21

      Trending
      • BASF Launches Ultradur B4335G3 HR HSP
      • Asian Paints Reports 4Q, Full Fiscal Year 2022 Results
      • BASF Launches Ultradur B4335G3 HR HSP | Coatings World
      • BEHR Launches COPPER FORCE Interior Paint | Coatings World
      • BEHR Launches COPPER FORCE Interior Paint
      Breaking News
      • PPG Sets Goals to Reduce Greenhouse Gas Emissions, Unveils 2021 ESG Report
      • Birla Carbon to Present Sustainable Carbon-based Solutions at PaintIndia 2022
      • BTC Europe, NXTLEVVEL Biochem to Distribute Biobased & Biodegradable Solvents in Europe
      • Nouryon Issues 2021 Sustainability Report
      • PPG’s Diane Kappas Recognized as ‘Woman of Influence’ by Pittsburgh Business Times
      View Breaking News >
      CURRENT ISSUE

      May 2022

      • Biocides Market Outlook - 2027
      • Lab & Testing Equipment Directory
      • Aerospace Coatings Market

      Cookies help us to provide you with an excellent service. By using our website, you declare yourself in agreement with our use of cookies.
      You can obtain detailed information about the use of cookies on our website by clicking on "More information”.

      • About Us
      • Privacy Policy
      • Terms And Conditions
      • Contact Us

      follow us

      Subscribe
      Nutraceuticals World

      Latest Breaking News From Nutraceuticals World

      GC Rieber Foundations Expand Philanthropic Efforts
      Danone Celebrates 10th anniversary of Grant Program for Probiotics Research
      Stratum Nutrition’s Patent Portfolio Grows to Europe and Canada
      Coatings World

      Latest Breaking News From Coatings World

      PPG Sets Goals to Reduce Greenhouse Gas Emissions, Unveils 2021 ESG Report
      Birla Carbon to Present Sustainable Carbon-based Solutions at PaintIndia 2022
      BTC Europe, NXTLEVVEL Biochem to Distribute Biobased & Biodegradable Solvents in Europe
      Medical Product Outsourcing

      Latest Breaking News From Medical Product Outsourcing

      Kilo Health Invests 500,000 Euros in Pulsetto
      China to Strengthen Robotic Surgical Market With Second 5-Year Plan
      First Patient Enrolled in Alucent Biomedical's Vascular Scaffolding Clinical Trial
      Contract Pharma

      Latest Breaking News From Contract Pharma

      Piramal Pharma Solutions Upgrades Oral Solid Dose Capabilities
      Steriline Robotic Applications to Improve Quality in Drug Primary Packaging
      A Clean Sweep for AES at FOYA Awards
      Beauty Packaging

      Latest Breaking News From Beauty Packaging

      Men’s Skincare Market to Hit $13 Billion by End of 2022
      Estée Lauder Promotes Gibu Thomas to EVP, ELC Online
      HipDot Launches Girl Scout Cookie Collection
      Happi

      Latest Breaking News From Happi

      Consumer Dermatology Company Dermala Introduces Second Microbiome-Powdered Line of Products for Eczema-Prone Skin
      Duke Cannon Supply Co. Inks Five-Year Deal As Official Grooming Partner of the Army-Navy Football Game to be Held on Dec. 10
      Croda Achieves Highest Carbon Management Level in Ecovadis’ New Carbon Scorecard
      Ink World

      Latest Breaking News From Ink World

      Weekly Recap: Zeller+Gmelin, Sun Chemical and Kornit Top This Week’s News
      Nazdar Celebrates 100 Years with a New Look
      hubergroup Chemicals Exhibits at Paint India for First Time
      Label & Narrow Web

      Latest Breaking News From Label & Narrow Web

      AWA to host 22nd Global Release Liner Industry Conference & Exhibition
      Domino assists Grace Label with supply chain disruptions
      Rotocon wins AI Business Excellence Award
      Nonwovens Industry

      Latest Breaking News From Nonwovens Industry

      Thorne Relaunches Gut Health Test with Microbiome Wipe
      Thinx Names Meghan Davis as CEO
      Kimberly-Clark Reportedly Examining Sale of Latin American Tissue
      Orthopedic Design & Technology

      Latest Breaking News From Orthopedic Design & Technology

      James W. Stone Named AANA President
      Tom Hedman Named Senior Principal Scientist at Spinal Simplicity
      ODT's Most Read Stories This Week—May 21
      Printed Electronics Now

      Latest Breaking News From Printed Electronics Now

      Weekly Recap: Graphene Flagship, Japan Display and LG Display Top This Week’s Stories
      Evonik Launches New Processing Aids for PV Wafer Cutting
      NREL Creates Highest Efficiency 1-Sun Solar Cell

      Copyright © 2022 Rodman Media. All rights reserved. Use of this constitutes acceptance of our privacy policy The material on this site may not be reproduced, distributed, transmitted, or otherwise used, except with the prior written permission of Rodman Media.

      AD BLOCKER DETECTED

      Our website is made possible by displaying online advertisements to our visitors.
      Please consider supporting us by disabling your ad blocker.


      FREE SUBSCRIPTION Already a subscriber? Login