BASF: Strong First Half 2011
In the first half of 2011 BASF’s business remained dynamic. The previous year’s excellent results were exceeded. Following a strong start to the year, BASF had a good and very solid second quarter. Sales improved by 13.9% to EUR 18.5 billion and income from operations (EBIT) before special items by 1.4% to EUR 2.2 billion despite the suspension of oil production in Libya. In the second quarter of 2010, the Libyan activities contributed an EBIT before special items of EUR 280 million. On a comparable basis, EBIT before special items thus increased by 16%.
Compared with the extraordinary growth in the first quarter, the growth rates have normalized in the second quarter as expected. In addition, for the first time since the first quarter of 2010 currency effects were negative (minus 6%) due to the weak U.S. dollar. The inclusion of the Cognis businesses made a positive contribution to sales. In the chemicals business, sales volumes increased 5%. Due to the suspension of oil production in Libya, the contribution to earnings before taxes from Oil & Gas was lower compared with the same quarter of the previous year.
For the first half of 2011, sales were EUR 37.8 billion, an increase of 19.4% compared with the same period of the previous year. EBIT before special items rose by 19.4% to around EUR 5 billion.
BASF continues to view the economic outlook as positive for the second half of the year, but expects growth to be less dynamic, as could be observed towards the end of the second quarter.
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