BASF increased sales by 3% in Q2-2013 to just under EUR 18.4 billion thanks to higher sales volumes in all segments. Income from operations (EBIT) before special items decreased by 5% to around EUR 1.8 billion. In H1-2013, sales reached around EUR 38.1 billion, surpassing the level of the previous first half by 4%. EBIT before special items increased by 3% to more than EUR 4 billion.
"In light of the challenging conditions, our business performed well in the first half of 2013. Our business with crop protection products contributed substantially to sales and earnings growth. Earnings rose considerably in the Functional Materials & Solutions segment. Higher volumes in the Oil & Gas segment also boosted sales and earnings development," said Kurt Bock, Chairman of the Board of Executive Directors of BASF SE at the company's half-year press conference. At just under 2%, global gross domestic product grew more slowly in H1-2013 compared with the same period of the previous year. Global industrial production only rose by around 1% over the same period. Bock said: "The economic environment is and remains volatile. The European economy is shrinking slightly; the Chinese growth engine is no longer running at full power; the United States is growing moderately. We are clearly feeling these effects and are doing everything we can to maneuver BASF successfully through this challenging environment."
In the Chemicals segment, sales decreased by 4% in a weak environment. Sales prices declined due to lower raw material costs. Sales volumes rose slightly. Compared with the second quarter of 2012, EBIT before special items declined by EUR 106 million to EUR 495 million. This was mainly the result of weaker margins for caprolactam and polyamides.
In the Performance Products segment, sales were down by 1% on account of negative currency effects and lower sales prices resulting from reduced raw material costs. Increased volumes in Care Chemicals as well as portfolio effects from the acquisition of Pronova BioPharma in the Nutrition & Health division had a positive impact on sales. Intense competition in some product lines and the depreciation of the yen against the euro led to a decrease in EBIT before special items of EUR 48 million to EUR 394 million. In the second quarter of 2012, insurance payments for damage sustained from the earthquake and tsunami disaster in Japan had contributed positively to earnings. In the Oil & Gas segment, sales grew by 10% despite lower oil prices. This was mostly a result of increased volumes in natural gas trading. At EUR 382 million, EBIT before special items significantly exceeded the level of the previous second quarter thanks to a higher contribution from the Exploration & Production business sector.
29-Jul-13 
