Source: plasticsnews.com
Higher volumes and prices have helped BASF SE register a sharp 29 percent year-on-year rise in its earnings to 2.5 billion euros ($2.7 billion) in the first three months of 2017.
According to BASF Chairman Kurt Bock, the demand trends during the course of 2016 continued in the first quarter of 2017, helping the chemical giant grow in volumes in all segments.
The German chemical group announced April 27 that sales rose year-on-year by 19 percent in the three months to the end of March to 16.9 billion euros ($18.3 billion), on the back of an 8 percent rise in volumes.
Additionally, the Ludwigshafen-based group achieved “significantly higher” sales prices — up 8 percent — particularly in the chemicals segment.
Also contributing to the strong sales were currency effects and the Chemetall business acquired from Albemarle in December 2016.
Earnings before interest, taxes and special items rose 29 percent in the first quarter of 2017 compared to the same period last year.
Of this amount, said BASF, 2 billion ($2.17 billion) was generated by the chemicals business, which comprises the segments chemicals, performance products and functional materials & solutions. Earnings in the chemicals business grew by 37 percent in the first quarter compared to last year.
BASF also added that the negative impacts of an accident at the North Harbor of the Ludwigshafen site in October 2016 was offset by an initial 100 million euro ($108.7 million) insurance payment for the damages.