Ludwigshaven, Germany – Price hikes in MDI and TDI helped the BASF Monomers Division to 41% sales rise in the first half of 2017, the firm said in its financial statement.
Price rises in isocyanates help BASF Monomer Division in H1 2017
MDI and TDI report into in the firm’s Monomers Division of BASF's Chemicals Segment. In the first half of 2017 sales rose 41% to EUR 3.4 bn compared with EUR 2.4 bn in the first half of last year. This moderated slightly in the second quarter with a 38% rise to EUR 1.7 bn compared with EUR 1.2 bn in the same period in 2016.
Discussing second quarter performance, BASF said: ‘Sales in the Monomers division grew considerably, mostly as a result of price increases in the isocyanates business. Sales volumes rose slightly, predominantly through higher volumes of MDI, and currency effects provided a slight tailwind. The considerable increase in EBIT before special items arose primarily through the higher levels of prices and volumes.’
The company’s polyurethane applications businesses, are reported in its Performance Materials division of its Functional Materials segment. Performance Materials sales in the second quarter rose 10% to EUR 1.9 bn, compared with EUR 1.8 bn in the second quarter of 2016. In the first half of 2017 sales were EUR 3.9bn up 13% from the EUR 3.4 bn in the 2016 half.
However, rising raw materials prices upstream in monomers and challenging market conditions in ‘individual business areas, resulted in EBIT from operations before special items declining by 22% to EUR 427 m in the second quarter of 2017, compared with EUR 531 m in the second quarter of 2016' the firm said.
Overall, BASF saw sales of EUR 33.1 bn in the first half of 2017 up 15% on the EUR 28.7 bn recorded in the first half of 2016. Earnings before interest, taxation, depreciation and amortisation rose by 23% in the half to EUR 6.8 bn from EUR 5.5 bn in the first half of 2016.
Commenting on the results Kurt Bock, BASF Executive Chairman said: ‘The positive demand trend continued in the second quarter of 2017. We increased our year-on-year sales volumes for the fifth consecutive quarter. Compared with the same quarter of last year, we considerably improved our sales and earnings.’