Q1 2025 BASF SE Earnings Call Transcript
Key Points
- BASF SE (BASFY) maintained its EBITDA before special items at about the same level as the prior year quarter, aligning with analyst estimates.
- The company has a strong manufacturing footprint with 90% of sales in Europe and North America coming from locally manufactured products, enhancing resilience.
- Sales volumes increased in Asia Pacific by 2% and in Greater China by 7%, indicating growth in these regions.
- BASF SE (BASFY) is investing in expanding production capacity for semiconductor-grade sulfuric acid, aligning with growing demand in Europe.
- The company maintains a strong balance sheet with a 45.9% equity ratio and a single A credit rating, ensuring favorable financing conditions.
- BASF SE (BASFY) experienced a 9% volume decline in North America and the United States due to challenging market conditions.
- The Surface Technologies and Agricultural Solutions segments saw considerable volume declines, impacted by lower precious metals trading and presales in previous quarters.
- EBITDA before special items decreased by EUR87 million compared to the prior year, with several segments recording lower earnings.
- Cash flows from operating activities were negative, with a free cash flow of minus EUR1.8 billion, reflecting seasonal and operational challenges.
- The company faces uncertainty from US tariffs and potential counter tariffs, impacting customer sentiment and market dynamics.
Good morning, ladies and gentlemen. On behalf of BASF, I would like to welcome you to our conference call on the first quarter 2025. Today's presentation is being recorded. (Event Instructions)
Today's presentation contains forward-looking statements. These statements are based on current estimates and projections of the Board of Executive Directors and currently available information. Forward-looking statements are not guarantees of the future developments and results outlined therein. These are dependent on a number of factors. They involve various risks and uncertainties, and they are based on assumptions that may not prove to be accurate.
BASF does not assume any obligation to update the forward-looking statements contained in this presentation above and beyond the legal requirements. With me on the call today are CFO, Dirk Elvermann and Christian Jutzi, President of BASF's Corporate Finance division. Please be aware that we have already posted the speech on our website at basf.com/Q12025. Now I would like to
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