BASF's second-quarter sales fell slightly year-on-year

♦ Sales of EUR 12 billion (down 4% year-on-year)

♦ EBITDA before special items of EUR 0 billion (down 27% year-on-year)

♦ EBIT before special items of EUR 1 billion (down 47% year-on-year)

♦ Net income of €5 billion from the spin-off of Wintershall (up €0 billion compared to the same period last year)

♦ Brudermüller: “BASF is rapidly and rigorously implementing a series of strategic growth actio.

In the second quarter of 2019, the economic environment was challenging for BA.

Compared with the second quarter of last year, BASF's sales fell by 4% to 12 billion eur.

Earnings before interest, tax, depreciation and amortization before special items fell 27 percent to 2 billion eur.

The global trade conflict, especially the Sino-US trade friction, has caused deep concern for compani.

Implement new strategies quickly and resolutely

BASF's new strategy defines a series of measures to focus more on customer needs, improve efficiency, and build a more efficient organizational structu.

BASF is currently restructuring the company structure, streamlining management, sharpening the responsibilities of service and regional divisions, and streamlining procedures and process.

These initiatives are part of BASF's "Excellence Progra.

BASF had previously announced that it would cut around 6,000 jobs globally by the end of 202 This is mainly achieved through the simplification of the architecture, while improving the efficiency of management, services and various business uni.

Brudermüller described the progress of the attrition project: "In the first half of this year, more than 1,100 employees of BASF Europe in Ludwigshafen accepted and signed a separation agreeme.

BASF's customer industry growth is lower than expected in the first half

        Growth in BASF's customer industry was significantly lower than expected in the first half of the ye.

        Major crop-producing regions in North America have been hit by prolonged heavy rainfall, affecting the agricultural sect.

        Chemicals and Materials business segment performance impacts second-quarter earnings

        .

        Earnings in the Agricultural Solutions segment also declined significantly, mainly due to seasonally negative earnings from newly acquired businesses and lower volumes in the Crop Protection busine.

        Special items in EBIT in the second quarter totaled a negative EUR 497 million, compared with a negative EUR 66 million in the same period in 201 The increase in special projects was partly attributable to a one-time cost of "excellence project.

        Net income amounted to EUR 5 billion, compared with EUR 5 billion in the second quarter of 201 Reported earnings per share increased from EUR 61 to EUR 03 in the second quarter of 201 This is mainly due to the book gain arising from the split after Wintershall and DEA completed the business combinati.

        Cash flow from operating activities was EUR 9 billion, compared with EUR 2 billion in the second quarter of 201 Free cash flow decreased by 31% to EUR 965 milli.

        2019 Macroeconomic Outlook

        Brudermüller said: “The risks to the global economy have increased significantly in recent mont.

Mainly due to geopolitics and the ongoing trade conflict between the US and its trading partne.

These conflicts are not expected to ease in the near future, resulting in a marked slowdown in global macroeconomic grow.

slow down, especially in Chi.

"

        BASF sharply lowered its growth forecasts for global industrial production and global chemical production in 2019, both to 5% from the previous forecast of
Brudermüller said: “The automotive industry is a very important customer industry for BASF, and it is difficult to see a recovery this ye.

We expect the global automotive industry to decline by 5% this ye.

Customers in all industries are very cautious about future expectations and ordering behavi.

We can Demand growth is also expected to be subdu.

”

        BASF Group adjusts outlook for 2019

        In view of the challenging macroeconomic environment, the BASF Group's outlook for 2019 was revised on July 8: BASF now expects sales to decline slight.

The company expects a 30% decline in EBIT before special ite.

Full-year 2019 return on capital (ROCE) is expected to decline significantly compared to last ye.