Ludwigshafen, Germany – BASF generated sales of EUR19.7bn in the third quarter of 2021, up 42.6% on the same period last year. EBIT across the business increased by 221% to EUR1.9bn in the quarter.
Strong Q3 for BASF as growth slows globally
CEO Martin Brudermulle: 'Compared with the third quarter of 2020, we increased prices by 36% and volumes by 6%.' The EBIT improvement was driven by significant earnings increases in the materials segment, which includes the company's polyurethane business, and industrial solutions.
Sales in the materials business rose by 49.5% between the third quarter of 2020 and the third quarter of 2021, up to EUR4bn from EUR2.7bn. Quarterly EBIT in the division increased by 191%, from EUR217m to EUR631m.
Brudermuller said: 'With strong earnings contributions from the chemicals and materials segments, the earning mix in the third quarter of 2021 was comparable with the second quarter of 2021. Our downstream businesses are still confronted with rising raw material, energy and freight costs. Price increases could only partly offset these higher costs.'
Looking to the rest of the year, BASF believes growth will slow because of supply bottlenecks. 'Pandemic-related disruptions in production and logistics in Asia intensified the scarcity of precursors worldwide,' it said.
Power cuts in some Chinese provinces hit energy-intensive sectors such as chemicals, but consumer demand across the world remains stable, the company said.