BASF maintains good business performance in the third quarter

After a solid first half, BASF maintained good business performance overall in the third quarter. Sales rose by 8% to €19 billion, particularly due to higher volumes. At just under €2.1 billion, income from operations (EBIT) before special items was 5% above the level of the third quarter of 2011. The higher contribution from the Oil & Gas and Agricultural Solutions segments more than offset lower earnings in the chemicals business (which comprises the Chemicals, Plastics, Performance Products and Functional Solutions segments).

At the presentations of the results, Dr. Kurt Bock, Chairman of the Board of Executive Directors of BASF SE said: “ In the past quarter, the outlook for the world economy has once again not improved and the uncertainty on the international capital markets continues. In China, growth in the third quarter of 2012 has slowed once again compared with the same quarter of the previous year. We see stabilization at the current level in China, but no visible upturn.”

Sales rose in the Plastics segment, especially as a result of currency effects. In the Polyurethanes division, sales volumes and prices also increased. Despite improved earnings in Polyurethanes, lower margins for polyamide precursors led to a considerable decline in earnings in the segment compared with the same period of the previous year.

Sales in the Performance Products segment were slightly above the level of the third quarter of 2011. This was mainly the result of positive currency effects. Lower volumes and sales prices weakened sales growth, however. Earnings declined as a result of higher costs due to idle capacity as well as increased spending on research and development.

Source: BASF