German speciality chemicals firm BASF reports that it raised sales in the third quarter of 2013 by 1.5% to approximately EUR17.7 billion, despite effects of weak currency. It attributes the growth to increased volumes, particularly in the Oil & Gas segment. Income from operations (EBIT) before special items rose by EUR221 million to just under EUR1.7 billion.

Meanwhile, its sales in Asia Pacific rose by 4% in local-currency terms, but were down by 4% in euro terms. Higher sales volumes were only partly able to offset the negative currency effects. Lower prices additionally reduced sales in the region. In South America, Africa, Middle East, sales rose by 8% in local currency terms, while dropping by 6% in euro terms, mainly strained by weakened currency.

Dr Kurt Bock, Chairman of the Board of Executive Directors of BASF SE, says that the increase in earnings was largely due to higher contributions from the Functional Materials & Solutions and Performance Products segments.

Meanwhile, the company expects a consistent economic environment this year, with GDP remaining at 2% and growths in industrial and chemical production at 2.7% and 3.1%, respectively.

Bock sees the year to remain challenging. “We do not anticipate an upturn in the global economy for the fourth quarter of 2013. We anticipate uneven development marked by economic uncertainty. Currency effects will continue to negatively impact sales and earnings in the fourth quarter. Nevertheless, we still aim to exceed the 2012 levels in sales and EBIT before special items,” he says.

BASF is also restructuring its portfolio. One focus is on the Performance Products segment where the growth and profitability of some standard products do not yet meet requirements, it says. As announced, a number of measures in the pigments business are being implemented to strengthen competitiveness and sharpen its customer focus. Investments in production network and R&D will continue.

The company also garnered increased sales volume by 3% to EUR4.4 billion (compared to third quarter of 2012) for its Functional Materials & Solutions unit. Its sales volume increased in the Performance Products segment. The Agricultural Solutions segment also showed increased sales despite negative currency effects, posting more than EUR1 billion; and the Oil & Gas segment sales racked up 25% to EUR3.1 billion, reports BASF.

Sales for companies headquartered in Europe rose by 5%, with the increased volumes in the Oil & Gas segment. In the Chemicals segment, however, sales declined primarily due to lower volumes and prices. North American sales are up by 6% in US dollars while remaining stable in euro terms.