Agricultural Solutions

Q1 2019

The Agricultural Solutions segment posted considerable sales growth compared with the first quarter of 2018. This was primarily attributable to portfolio effects from the acquisition of significant businesses and assets from Bayer in August 2018.1 We also achieved a higher price level in the legacy business while sales volumes were considerably lower year on year, mainly due to weather-related factors.

Factors influencing sales in Q1 2019 – Agricultural Solutions

Volumes

 

(8%)

Prices

 

4%

Portfolio

 

56%

Currencies

 

1%

Sales

 

53%

We recorded considerable sales growth in Europe compared with the prior-year quarter. This was primarily the result of portfolio effects. In addition, the price level was slightly higher.

Sales rose considerably in North America, mainly due to portfolio effects. Strongly positive currency effects and a slightly higher price level also contributed to the sales increase. This more than offset the significant decline in herbicide and fungicide volumes, especially in the United States, due to adverse weather conditions and an extended period of cold.

We considerably improved sales in Asia. This was largely attributable to portfolio effects. Sales were also positively impacted by slightly positive currency effects and a slightly higher price level.

Sales rose considerably in the region South America, Africa, Middle East, driven mainly by portfolio effects. A significantly higher price level and growth in fungicide and herbicide volumes, particularly in Brazil, also contributed to the sales increase. Sales were weighed down by strongly negative currency effects.

Income from operations (EBIT) before special items was considerably higher than in the first quarter of 2018. This was largely due to the contribution from the acquired businesses.

EBIT included special income from divestitures in accordance with the conditions imposed by antitrust authorities within the scope of the acquisition of the Bayer businesses. In the first quarter of 2019, these exceeded the special charges for the integration of the acquired businesses.

1 In the first quarter of 2019, the sales contribution from the acquired businesses is still reported as a portfolio effect in our analysis of sales effects as the acquisition of significant businesses and assets from Bayer was closed in August 2018. The volumes, price and currency effects described here thus relate to BASF operations excluding the acquired activities.

Segment data – Agricultural Solutions (Million €)

 

 

Q1

 

 

2019

2018

+/–

a

Amortization of intangible assets and depreciation of property, plant and equipment (including impairments and reversals of impairments)

b

Additions to intangible assets and property, plant and equipment

Sales to third parties

 

2,649

1,728

53%

Income from operations before depreciation, amortization and special items

 

910

487

87%

Income from operations before depreciation and amortization (EBITDA)

 

943

481

96%

Depreciation and amortizationa

 

171

64

167%

Income from operations (EBIT)

 

772

417

85%

Special items

 

32

(6)

.

EBIT before special items

 

740

423

75%

Assets (March 31)

 

18,760

8,869

112%

Investments including acquisitionsb

 

(32)

34

.

Research and development expenses

 

193

117

65%