BASF continues to perform strongly in the third quarter of 2021

● Sales rose sharply by 42% to EUR 19.
7 billion

● EBIT before exceptional items rose significantly to EUR 1.
9 billion

● Outlook for 2021: Sales expected to rise to between EUR 76 billion and EUR 78 billion; EBIT before special items between EUR 7.
5 billion and EUR 8 billion

Dr.
Martin Brudermüller, Chairman of the Executive Board of BASF Europe, and BASF Chief Financial Officer Dr.
Hans-Ulrich Engel today released financial results for the third quarter.
demand remains stable
.

"Stable market demand guarantees continued growth in our earnings .
Compared to the third quarter of 2020, our prices increased by 36% and sales volumes increased by 6%, " said Brudermüller
.

Sales in the third quarter of 2021 were 19.
7 billion euros, an increase of 5.
9 billion euros compared to the same period last year
.
This increase in sales was mainly attributable to a substantial increase in prices in various business areas, especially in the chemicals business, surface treatment technology and materials business
.
Sales growth was also driven by higher volumes in almost all business areas
.

EBIT before special items in the third quarter of 2021 was EUR 1.
9 billion, an increase of EUR 1.
3 billion from the third quarter of 2020
.
This was mainly attributable to the significant increase in EBIT before special items in the Chemicals business area; the material business area, the Industrial Solutions business area and the "Other" business area also increased significantly, which also increased earnings to a certain extent
.
In contrast, EBIT before special items decreased significantly in the Agricultural Solutions, Surface Technology and Nutrition & Care business areas
.
Brudermüller said: “Thanks to the strong earnings performance of the Chemicals and Materials business areas, the earnings mix in the third quarter of 2021 was comparable to the previous second quarter
.
Our downstream business still faces continued increases in raw material, energy and freight costs.
These challenges
from higher costs are only partially offset by higher prices in the downstream business
.
”

Special items in EBIT for the third quarter of 2021 were negative 43 million euros, with expenses mainly due to restructuring measures, divestitures and integration costs
.
Other gains played a somewhat offsetting role
.
Special items in the previous year were negative 3.
2 billion euros, mainly due to impairments in the various business areas and restructuring measures
.

EBIT was 1.
8 billion euros, a sharp increase from negative 2.
6 billion euros in the same period last year
.
Among them, the company's income accounted for using the equity method increased to 200 million euros (an increase of 144 million euros compared with the same period last year), mainly contributed by Nanjing-based Yangzi Petrochemical-BASF Co.
,
Ltd.

EBITDA before special items was 2.
8 billion euros, an increase of 1.
2 billion euros compared to the same period last year
.
EBITDA was EUR 2.
7 billion, an increase of EUR 1.
7 billion compared to the same period last year
.

Net income was 1.
3 billion euros, 3.
4 billion euros higher than a year earlier
.
Earnings per share for the third quarter of 2021 were EUR 1.
36 (Q3 2020: minus EUR 2.
31)
.
Adjusted earnings per share were EUR 1.
56 (Q3 2020: EUR 0.
60), taking into account the amortization of special items and intangible assets
.

Cash flow from operating activities was EUR 1.
9 billion, a decrease of EUR 204 million compared to the same period last year
.
Free cash flow was EUR 1.
1 billion, a decrease of EUR 287 million compared to the same period last year, mainly due to lower cash flow from operating activities
.

BASF Group Outlook 2021

The global economy continued its recovery in the third quarter of 2021 from last year's sharp decline in global economic activity
.
However, this growth has slowed from the previous quarter, mainly due to supply chain bottlenecks in several manufacturing sectors
.
The epidemic has caused production and logistics disruptions in Asia, further exacerbating the tight global precursor supply situation; due to chip shortages, global car production has been significantly reduced
.
In addition, previous power cuts in some provinces in China have also negatively affected production activities in various industries, especially energy-intensive industries
.
Global demand for consumer and durable consumer goods remained generally stable despite rising energy prices burdening businesses and end-users
.

BASF expects supply chain bottlenecks to continue to have a negative impact on the global economic recovery in the fourth quarter of 2021
.
The company’s assessment of the global economic environment for 2021 has been adjusted accordingly (industrial and chemical production figures are rounded to the nearest half a percentage point; in brackets below are the forecasts previously published in the BASF Group’s 2021 Quarterly Report):

● Global GDP growth: +5.
3% (+5.
5%)

● Industrial production growth: +6.
0% (+6.
5%)

● Growth in global chemical production: +6.
0% (+6.
5%)

● Average price of EUR/USD: EUR 1 to USD 1.
20 (unchanged)

● Brent averaged $70 a barrel ($65 a barrel)

Based on the solid performance of BASF Group and the expected business growth from stable demand (especially in the Chemicals and Materials business areas), the outlook for fiscal 2021 is adjusted as follows (in parentheses below the previous "BASF Group 2021 II" Forecast in the Quarterly Report):

● Sales are expected to be between EUR 76 billion and EUR 78 billion (EUR 74 billion to EUR 77 billion)

● EBIT before special items is expected to be between EUR 7.
5 billion and EUR 8 billion (EUR 7-7.
5 billion)

● Return on capital (ROCE) between 13.
2% and 14.
1% (12.
1% to 12.
9%)

● Sales of 'Beyond Products' increased between EUR 21.
5 billion and EUR 22.
5 billion (EUR 21 billion and EUR 22 billion)

● CO2 emissions of 20.
5 million tons to 21.
5 million tons (unchanged)