Ludwigshafen, Germany – EBITDA in BASF's materials division declined by 45% to EUR 449m in the third quarter of 2019. This compares with EUR 814m in Q3 2018. The fall was a result of lower diisocyanate margins. BASF accounts for its polyurethane business in the materials division.
Sales in this division subsided by 13% between the two quarters. They were EUR 2.9bn in the third quarter of 2019. This compares with EUR 3.3bn the third quarter 2018. Sales fell because more diisocyanates were available in the third quarter of 2019.
Although volumes increased, this was offset by worse performance in the performance materials business. Here, sales shrank by 6.1% to EUR 1.5bn in the third quarter of 2019. This compares with EUR 1.6bn in the third quarter of 2018. The company said that the numbers had been hit by significantly lower prices for polyurethane systems as a result of a decrease in raw materials price.
Across the company, sales were EUR 15.2bn in the third quarter of 2019, 2% lower than the same period in 2018. This was because of the effects of monomer prices in materials and lower cracker margins in the company' chemicals business. EBITDA rose by 7% to EUR 2.2bn in the third quarter of 2019.
It maintained the outlook for the rest of the year that was presented in the company's first half results.