The BASF Group recorded significant growth in sales and profit in the third quarter of 2017. “The positive development in demand continued in the third quarter of 2017. We achieved solid growth in volumes, even compared to the positive results recorded in the same quarter last year,” comments Kurt Bock, Chairman of the Board of BASF SE.
Sales of the BASF Group increased by 9 percent compared to the same quarter a year earlier to 15,3 billion euros. This result is mainly due to the positive trend in volumes and the increase in sales prices in the Chemicals segment. Sales were also driven by the Chemetall business acquired in December 2016. All segments recorded slightly negative currency effects.
The important contribution of the Chemicals segment also had a positive impact on the operating result (EBIT) before special items, which rose from 244 million euros to 1,8 billion euros. The BASF Group reported a slight decrease in EBIT before special items in the Oil & Gas segment and a significant decline in the remaining segments and in the Others segment, mainly due to the increase in the cost of raw materials.
EBIT for the third quarter includes net special items equal to 198 million euros, after a decrease of 52 million euros recorded in the same quarter last year. This is mainly due to special income from the Performance Products segment and related to the transfer of the assets of BASF's skin chemicals business to the Stahl Group. As a result, EBIT grew from 1,5 to 2 billion euros.
Compared with the previous quarter, operating income before depreciation, amortization and special items (EBITDA before special items) increased by 303 million euros to 2,8 billion euros, while EBITDA recorded an increase of 570 million euro, equal to 3 billion euro.
Net income grew by €448 million to €1,3 billion. In the third quarter of 2017, earnings per share were €1,45 compared to €0,97 in the same period of 2016. Earnings per share adjusted for special items and amortization of intangible assets were €1,40 ( first quarter of 2016: 1,10).
In the first three quarters of 2017, cash from operating activities increased by €1,8 billion year-on-year to €7,6 billion. This is mainly due to the increase in net income. Free cash flow grew from €2,9 billion to €5 billion in the first nine months of 2017.
