Ludwigshafen, Germany – BASF said that in 2017, sales in its chemicals segment rose by EUR3.4 bn to EUR16.3 bn.
‘This was primarily attributable to higher prices, especially in the monomers division,’ the company said. The monomers division contains the company’s isocyanates businesses.
The high price of isocyanates led to an almost 50% increase in earnings before interest and tax in the division.
EBIT before special items rose by EUR2.2 bn to EUR4.2 bn, mainly as a result of higher margins for isocyanates.
In the functional materials & solutions segment, which houses systems and applications for polyurethane, 2017 sales increased by EUR2 bn to EUR 20.7 bn. BASF said this was a result of higher prices and volumes. The Chemetall business, which was acquired from Albemarle in December 2016, also contributed.
EBIT before special items was down EUR329 m on the 2016 figures, at EUR1.6 bn , figure, primarily because of lower margins.
For 2018, the company expects the global economy and chemical production to grow at roughly the same pace as it did in 2017. Further growth is expected in all regions. BASF anticipates a continuation of the recovery that is already underway in Brazil and Russia. In addition to these positive conditions, BASF also expects there to be increased market volatility.