BASF agchem sales up 2% in 2017

BASF sales in the Agricultural Solutions segment rose by €127 million to €5,696 million in 2017 as a result of higher sales volumes. In an ongoing difficult market environment for crop protection products, sales growth was negatively impacted by price declines, especially in South America, and negative currency effects.

Income from operations (EBIT) before special items was €1,033 million, down €54 million on the prior-year figure. The slight decline was mainly due to the lower average margins from a different product mix and the difficult market situation in Brazil. Earnings were also negatively impacted by the shutdowns of our production facilities in Beaumont, Texas, and Manatí, Puerto Rico, because of the hurricanes. Fixed costs rose slightly. EBIT declined by €22 million to €1,015 million. 
In Europe, sales increased by €25 million to €1,983 million. Volumes growth, especially in oilseed herbicides in eastern and southern Europe, more than compensated for declines in western and northern Europe, particularly in fungicides.

At €2,003 million, sales in North America exceeded the prior-year figure by €202 million. BASF is able to considerably increase sales volumes, especially for herbicides in the United States. The successful market launch of our new herbicide Engenia® contributed substantially to sales growth. Strong demand for fungicides in Canada also had a positive impact. 

Sales in Asia rose by €33 million to €582 million. BASF achieved particularly strong volumes growth for fungicides in China and India, particularly with innovations such as our new product portfolio for rice.

In Southeast Asia, sales volumes increased, especially for fungicides and herbicides. In the region South America, Africa, Middle East, sales  declined by €133 million to €1,128 million. This was largely due to lower prices for fungicides and insecticides, negative currency effects and the reduction of inventories at its customers in Brazil. Here, BASF was able to increase sales  volumes despite the ongoing difficult business environment for crop protection products. The positive trend in Argentina also  contributed to volumes growth in the region.