Year 2014 proved to be one of the best financial years for BASF SE (ADR) (OTCMKTS:BASFY). It reported €1.5 billion earnings before interest, tax, depreciation and amortization cost in the fourth quarter of 2014. It was 2.8% more than the performance of 2013.
Insights On The Matter:
BASF reported total sales of €18.0 billion for the 4Q2014, which was 0.6% lesser than 4Q2013. EBIT of €1.5 billion didn’t include any special items. The primary reason for the overall increased performance was extraordinary performance in Agricultural and Chemical Solutions. It witnessed a slight reduction in sales due to slow performance of international oil market. Natural Gas and Oil segment of BASF didn’t perform up to market expectations, which led to the overall reduction in the sales in the fourth quarter, though yearly sales remained positive.
According to reports, total sales for the previous year were €74.3 billion, 0.5% more than the year before. When it comes to EBIT before special items, it managed to post a huge figure of €7.4 billion, 4% more than the EBIT of 2013. Earnings per share of the company were €5.61, 7.5% more on YOY basis. BASF decided to give an equal share of increased earnings to its shareholders; hence, it proposed a dividend of €2.80 in 2014 as compared to €2.70 of 2013.
Management of BASF SE (ADR) (OTCMKTS:BASFY) expects that the improved market conditions in 2015 will affect its sales and EBIT. While sales are expected to improve from its level in 2014, EBIT before special items is likely to match its 2014 level without any doubt. The overall economic development in Europe was very slow, but still BASFY managed to post overall attractive financial results. As the market conditions are improving steadily now and are expected to do the same in the future as well, BASF hopes that it will touch new heights in the coming months.