Ludwigshafen, Germany — BASF reported sales of EUR 14bn ($ 15.2bn) during Q3 2016, 20% lower than the figure reported in Q3 2015.
Net income fell from EUR 1.2bn to EUR 888m, the firm said.
In the functional materials and solutions segment, which includes polyurethanes, sales were EUR 4.7bn. The figure represented a 3% hike on the prior year quarter.
Volumes rises in the automotive industry and an overall high demand from the construction industry were partly behind the growth, the report added. However, lower prices, negative currency effects and the divestiture of the global polyolefin catalysts business slightly dampened sales, the report said.
“As a result of the higher volumes and reduced fixed costs, income from operations (EBIT) before special items grew by EUR 126 m to EUR 497 m,” according to ceo Hans-Ulrich Engel.
He said that demand from the automotive and construction industries remained robust worldwide and in Europe there was “moderate growth across all sectors.”
“The summer lull in July and August was less pronounced than in prior years. In Asia, the upward trend continued in Q3,” he added.
China’s growth was “slightly higher than expected” and demand in North America developed “modestly,” he added.
“Economic development in South America remained weak and business confidence low. Volumes decreased, especially in Brazil, our largest market in the region.”
Engel continued: “We continue to expect EBIT before special items to be slightly below the level of 2015. This remains an ambitious goal in the current volatile and challenging environment, and in light of the fire of October 17 and its consequences.”
XE Currency conversion: 27 October, 2016
