In the second quarter of 2018, BASF Group achieved a slight increase in sales and earnings.
 
“Compared with the second quarter of 2017, sales rose by €518 million to €16.8 billion,” said Dr. Martin Brudermüller, chairman of the Board of Executive Directors of BASF SE. This was driven by higher prices in all segments, particularly in Functional Materials & Solutions and Oil & Gas. In addition, with the exception of Performance Products, all segments achieved volumes growth. This was partially offset by negative currency effects.
 
BASF increased income from operations (EBIT) before special items by €105 million year on year to €2.4 billion, largely due to the significantly improved contribution from the Oil & Gas segment. EBIT before special items rose slightly in the Agricultural Solutions and Performance Products segments but decreased slightly in the Chemicals segment and declined considerably in the Functional Materials & Solutions segment.
 
Sales also increased compared with the first half of 2017, rising by €307 million to €33.4 billion. This was due to higher sales prices, especially in the Functional Materials & Solutions, Chemicals and Oil & Gas segments, as well as volumes growth in all segments except Performance Products. Negative currency effects, primarily relating to the U.S. dollar, dampened sales in all segments.
 
BASF increased EBIT before special items in the first half of 2018 by €160 million to €4.9 billion, largely due to the significantly improved contribution from the Oil & Gas segment. EBIT before special items rose slightly in the Chemicals segment but decreased slightly in the Performance Products segment and declined considerably in the Functional Materials & Solutions and Agricultural Solutions segments.
 
“Global economic risks increased significantly over the course of the first half of 2018, driven by geopolitical developments and the trade conflicts between the United States and China, as well as between the United States and Europe. We are monitoring these developments and the potential effects on our business very closely,” Brudermüller said.
 
Segment Results
 
Sales of €4.1 billion in the Chemicals segment slightly exceeded the €4 billion reported in the prior-year quarter. This was the result of higher prices, especially in the Monomers and Intermediates divisions, as well as volumes growth. EBIT before special items declined slightly compared with the second quarter of 2017, but remained high at €1.1 billion. In the first half of the year, sales in the Chemicals segment grew by 3%, from €8.2 billion to €8.4 billion. EBIT before special items rose by 6% to €2.2 billion.
 
Sales in the Performance Products segment declined slightly year on year to €3.9 billion (second quarter 2017: €4.1 billion). The main driver was negative currency effects in all divisions, mostly relating to the US dollar. Lower volumes in the Nutrition & Health and Care Chemicals divisions, as well as portfolio effects in the Performance Chemicals and Dispersions & Pigments divisions, also had a dampening effect on sales. By contrast, sales were positively impacted by higher sales prices. At €409 million, EBIT before special items increased slightly compared with the prior-year quarter thanks to lower fixed costs and higher margins. Sales in the first half of the year were down by 5%, from €8.4 billion to €7.9 billion. EBIT before special items fell by 4% in the first half of the year to €879 million.
 
In the Functional Materials & Solutions segment, sales of €5.5 billion grew slightly by 5% compared with the prior-year quarter on the back of higher prices and increased sales volumes. At €338 million, EBIT before special items was considerably below the figure for the second quarter of 2017, primarily as a result of higher fixed costs and lower margins due to the increase in raw materials prices. In the first half of the year, sales of €10.7 billion were 2% above the level of the prior-year period. EBIT before special items amounted to €671 million, compared with €953 million in the prior-year period.