BASF Q2 earnings leap 30%
Sales increase on the back of a return to form by chemicals segment
BASF is the latest company to report impressive second quarter sales gains amidst the improving business environment. The chemicals giant announced second quarter sales of €16.2bn, an increase of 30% on the prior year period. Combined with the company’s upturn in business during the first quarter of 2010, sales in the first six months increased 28% to €31.7bn.
BASF’s chairman of the board of executive directors, Jürgen Hambrecht, attributed the growth to the company’s “clear” strategy, which focuses on “businesses that are closer to customers and on growth markets”.
While all businesses helped to boost earnings, second quarter sales in BASF’s chemicals segment increased 64% as compared to a weak second quarter in 2009.
Sales in the plastics segment grew 48%, while performance products increased by 29%. Functional solutions meanwhile rose 40%.
Regionally, BASF’s business in the US improved significantly, increasing 42% to €792m. Its European business grew 16% to €2.63bn, while in Asia Pacific and South America, Africa and Middle East sales were up 60% and 33% respectively in euro terms.
Speaking on BASF’s outlook for the full financial year, Hambrecht said: “We expect our sales to grow in 2010 and outpace global chemical production.” However, he also warned that necessary consolidation of government budgets and the winding down of national stimulus plans worldwide could dampen demand.