Sales of the companies in the region increased by 7.3% above the previous year to €3,051 million. In local currency terms, sales rose by 11.7%.
A large contribution to the positive business development in South America was made by the Agricultural Solutions segment and the Care Chemicals division.
In Africa and in the Middle East sales increased in particular in the Chemicals, Plastics and Oil & Gas segments. This offset lower sales in the Functional Solutions segment.
Earnings increased by 1% to €314 million. This was in particular due to the very positive development in the Agricultural Solutions segment in South America, which could boost margins significantly. The Care Chemicals division also contributed to the increase in income from operations.
To secure our future success in the Agricultural Solutions segment, a herbicide tolerant soybean, which was jointly developed with the agricultural research institute EMBRAPA, was submitted for official approval in Brazil. An analysis of the purchasing power of broad sections of the South American population led to projects with the construction industry in the region. Some of these projects were cross-divisional.
The FARO initiative constantly pinpoints sales potential for BASF’s products and solutions in strongly growing industries and value-adding chains in the region. For example, additional sales potential was identified in mining and in the value-adding chains for renewable raw materials.