Results of Operations

Sales rose by €2,647 million compared with the first quarter of 2020 to €19,400 million. This was mainly due to higher prices and volume growth. Prices rose significantly in the Surface Technologies, Chemicals and Materials segments. All segments increased sales volumes. Negative currency effects had an offsetting impact.

Factors influencing BASF Group sales in Q1 2021

Compared with the prior-year quarter, EBIT before special items¹ rose by €681 million to €2,321 million. This was primarily attributable to considerably higher earnings contributions from the Materials and Chemicals segments. The Surface Technologies segment also recorded considerable growth in EBIT before special items. By contrast, EBIT before special items declined considerably in Other and in the Nutrition & Care segment, and decreased slightly in the Industrial Solutions segment. In the Agricultural Solutions segment, EBIT before special items was on a level with the prior-year quarter.

Special items in EBIT amounted to –€10 million in the first quarter of 2021, compared with –€184 million in the prior-year quarter.

EBIT² rose by €855 million compared with the first quarter of 2020 to €2,311 million. Income from operations before depreciation, amortization and special items (EBITDA before special items)³ increased by €602 million to €3,181 million and EBITDA³ rose by €748 million to €3,176 million in the same period.

At €68 million, net income from shareholdings improved by €236 million compared with the prior-year quarter. This is primarily attributable to the positive earnings contribution of €51 million from Wintershall Dea GmbH, after –€165 million in the first quarter of 2020. The non-integral equity-accounted shareholding in Solenis also contributed to the increase in net income from shareholdings, with €28 million (Q1 2020: –€1 million).

The financial result declined by €44 million to –€132 million, mainly from a lower other financial result due to expenses in connection with bonds in foreign currency and the corresponding hedging instruments. In the prior-year period, income arose from this item. This was partially offset by an improved interest result due to lower interest expenses for financial indebtedness.

Income before income taxes rose to €2,247 million, compared with €1,200 million in the first quarter of 2020. The tax rate decreased from 26.6% to 19.4%, due among other factors to the higher earnings contribution from equity-accounted shareholdings.

Compared with the first quarter of 2020, income after taxes increased by €907 million to €1,810 million. Of this amount, €1,718 million was attributable to shareholders of BASF SE. Noncontrolling interests accounted for €92 million after €18 million in the prior-year quarter, primarily as a result of improved earnings contributions from BASF PETRONAS Chemicals Sdn. Bhd., Kuala Lumpur, Malaysia; Shanghai BASF Polyurethane Company Ltd., Shanghai, China; and BASF TOTAL Petrochemicals LLC, Port Arthur, Texas.

Earnings per share in the first quarter of the year were €1.87, compared with €0.97 in the prior-year quarter. Earnings per share adjusted⁴ for special items and amortization of intangible assets amounted to €2.00 (Q1 2020: €1.26).