BASF has solid Q2 performance and buoyant outlook
By PRW Staff
Posted 26 July 2012
BASF has reported a solid second quarter trading performance, with sales up 6% to €19.5bn (£15.2bn) and income before special items increasing 11% to €2.5bn (£1.95bn).
The company said it was relatively upbeat about future trading, suggesting the resumption of its oil production in Libya will help it offset any decline in profits from its core chemicals operation.
Chief executive Kurt Bock told Reuters news agency: "Our forecast is especially supported by the resumption of our crude oil production in Libya. It is unlikely that the earnings from our chemicals business will match the level of the previous year.”
He suggested that customers were running down inventories with the expectation that materials costs will come down. Bock added that the growth impetus from China was beginning to falter.
BASF is speeding up its cost-cutting measures but said it will continue to invest in Asia as planned as its long-term growth projections for the region remained in place.
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