Ludwigshafen, Germany – BASF has announced 1% growth in sales for the second quarter of 2014 compared to the same period in 2013, on sales of EUR18.5bn ($24.9bn).
“This was largely the result of higher sales volumes in our chemicals business, which comprises the chemicals, performance products and functional materials & solutions segments, as well as in the oil & gas segment,” said Kurt Bock, chairman of the board of executive directors at the half-year earnings telephone conference.
Earnings before taxes increased by EUR246m to EUR2bn compared with the previous second quarter.
Sales at BASF companies with locations in Europe rose by 1% in the second quarter compared with the same quarter of the previous year.
Sales matched the previous second-quarter level in the functional materials & solutions business which includes the performance materials division consisting of polyurethanes, thermoplastics, foams and epoxy resins. Sales volumes increased considerably, primarily in the catalysts division. EBIT before special items for functional materials & solutions increased by EUR63m to EUR356m. The company said this was largely due to higher volumes and reduced fixed costs.
BASF also said it is increasing investments in the plastics and plastics precursors business in Asia.
For 2014, BASF expects weaker growth in the global economy than was predicted six months ago, now 2.5 % instead of 2.8 %.
BASF also said that its sales are likely to decrease slightly compared with 2013 due to the divestiture of the gas trading and gas storage business, as well as to continuing negative currency effects.
