Ludwigshafen, Germany -- BASF has reported polyurethane sales up 40 percent to Euro 1400 million ($1830 million) in the second quarter of 2010 (Q2), compared to the same period last year. Sales for the first six months of 2010 were also up 40 percent to Euro 2620 million, compared to the first half of 2009.
The sales growth was driven by strong demand, particularly in the automotive industry, BASF said in a 29 July financial results statement. "Business development was very pleasing, especially in our business with specialties. With prices remaining generally stable, sales grew substantially," BASF said.
BASF's plastics business, which consists of the group's performance polymers and polyurethane operations, reported overall sales up by 49 percent to Euro 4781 million for the first half of 2010, compared to the same period last year.
The company reported total group sales up 29.7 percent to Euro 16 214 million in Q2, compared to Q2 2009. Quarterly earnings were up by 94 percent to Euro 2206 million, compared to the second quarter of 2009. For the first six months of the year, total sales were up 28 percent to Euro 31 668 million, compared to the same period last year.
Global chemical production benefited from a strong upturn in the global economy in the first half of 2010, BASF said. "Demand was additionally driven by our customers' inventory restocking. In this economic environment, our business developed more favourably than we had expected.
However, there continue to be risks regarding a self-sustaining, lasting recovery," the company said, adding, "We expect that economic recovery will continue at a moderate pace in the second half of 2010,"
BASF said, overall, it expects higher sales and a significant increase in earnings in 2010.
BASF's 2010 forecast expects growth in chemical production, excluding pharmaceuticals, to increase by 7-8 percent, compared to 4.9 percent in 2009. (RD)
PIC: BASF headquarters in Ludwigshafen, Germany.