BASF Group reports a 3% increase in sales despite a 24% decline in EBIT, driven by improved performance in the Agricultural Solutions segment and the strategic merger of Wintershall and DEA.

Target Information

BASF Group reported a sales increase of 3% year-on-year, reaching €16.2 billion in the first quarter of 2019. The company experienced a significant decline in EBIT before special items, dropping by 24% to €1.7 billion, primarily due to reduced contributions from the Materials and Chemicals segments. While some sectors struggled, the Agricultural Solutions segment showed robust performance, indicating resilience in specific markets.

Dr. Martin Brudermüller, Chairman of the Board of Executive Directors, attributed the earnings decline predominantly to lower margins from previous high-performance segments, particularly isocyanates and crackers. However, the Agricultural Solutions and Industrial Solutions segments reported substantial improvements in earnings, bolstered by previous acquisitions.

Industry Overview in Germany

Germany's chemical industry has been facing challenges due to geopolitical tensions and trade conflicts, particularly those involving the United States and China.