BASF posted strong sales result in Q2

Due to the strong season in the Northern Hemisphere, BASF’s Agricultural Solutions segment posted successful sales result in the second quarter of 2012 ended June 30th. Sales were €1,467 million, up by 21.7% compared with the same period of last year. Earnings before interest, tax (EBIT) in the second quarter increased by 25.1% to €414 million and EBITDA rose 20.4% to €449 million. The company was able to raise sales volumes in all indications and regions as a result of high demand of products. Business development was very positive for fungicides in particular. Volumes, prices and currencies rose by 14%, 2% and 6% respectively, they both contributed to sales growth.

BASF’s agricultural solutions results (€ million)
Q2 ended June 30th	Q2 2012	Q2 2011	% change	H1 2012	H1 2011	% change
sales	1,467	1,205	+21.7	2,794	2,435	+14.7
EBITDA1	449	373	+20.4	908	757	+19.9
EBIT2	414	331	+25.1	833	674	+23.6
1 earnings before interest, tax, depreciation and amortisation 2 earnings before interest, tax

Sales in Europe increased significantly as growing season developed positively. This was mostly due to high demand for Clearfeld® herbicide tolerance system and the successful introduction of fungicide Xemium® (fluxapyroxad).

Sales rose in North America, driven particularly by the company’s business with products for plant health as well as by the imidazolinone and Kixor® (saflufenacil) brand herbicides. Positive currency effects additionally boosted sales growth.

Higher demand for herbicides in India boosted sales growth in Asia.

Sales in South America also recorded exciting growth despite continuing drought in the southern regions. Sales volumes for insecticides based on the active ingredient Fipronil® continued to increase. Business with the fungicide F 500® also developed well.

Sales in the first half year reached €2,794 million, up by 14.7% and EBITDA was up 19.9% to €908 million. Fungicides were the largest category in the first-half, accounting for 45% of crop protection’s total sales, followed by herbicides (38%) and insecticides (17%). For region, Europe was accounting for the largest share of 47% of the company’s total sales in all regions. North America was in the second place with 29% and Asia Pacific 11%, South America, Africa, Middle East 13%.