OREANDA-NEWS. Sales of BASF Group grew by 3% compared with the previous third quarter, reaching EUR 18.3 billion. A sharp rise in volumes in the Natural Gas Trading business sector was mainly responsible for this growth. Income from operations (EBIT) before special items increased by EUR 150 million to around EUR 1.8 billion. The primary contributors to this development were the Chemicals and Oil & Gas segments, together with Other. The increase was dampened by a considerable earnings decline in the Agricultural Solutions segment.

"The economic environment remained challenging in the third quarter of 2014. Geopolitical tensions and increasing uncertainty about the global economic development significantly dampened demand for chemical products. Nevertheless, sales and earnings of BASF Group increased in the third quarter of 2014," said Dr. Kurt Bock, Chairman of the Board of Executive Directors of BASF SE.

EBIT grew by EUR 128 million to EUR 1.8 billion compared with the third quarter of the previous year. EBITDA rose by EUR 30 million to EUR 2.5 billion. Income before taxes and minority interests increased by EUR 126 million quarter-on-quarter to EUR 1.6 billion. Because of the higher tax rate and increased minority interests, net income declined by EUR 53 million to EUR 1.0 billion. Earnings per share were EUR 1.14 in the third quarter of 2014, compared with EUR 1.20 in the same quarter of 2013. Adjusted for special items and amortization of intangible assets, earnings per share amounted to EUR 1.27, remaining at the same level as the previous third quarter (EUR 1.28).

Outlook for the full year 2014
For the fourth quarter of 2014, BASF does not anticipate an upturn in demand. The company has adjusted its expectations for the global economy in 2014 as follows (previous forecast in parentheses):
* Growth of gross domestic product: 2.3% (2.5%)
* Growth in chemical production: 4.0% (4.4%)
* An average exchange rate of \\$1.35 per euro (unchanged)
* An average oil price (Brent) for the year of USD 105 per barrel (USD 110 per barrel)

Bock: "We assume that the environment will remain volatile and challenging. We nevertheless still aim to slightly raise our EBIT before special items for the year 2014." Sales are likely to decrease slightly as a result of the divestiture of the gas trading and storage business planned for this year in addition to negative currency effects.