BASF agricultural solutions sales decreased 13% in Q2 2016

In a market environment that remains difficult, especially in South America, BASF Agricultural Solutions segment’s sales decreased by 13.1% to €1,459 million in the second quarter of 2016 year-on-year. Lower volumes and negative currency effects were the key factors for this development. BASF was able to slightly raise prices (volumes–8%, prices 1%, currencies –6%).

Sales declined considerably in Europe, mainly as a result of lower sales volumes. This was particularly true of fungicides in Germany and Poland, where demand was dampened by high customer inventory levels and by the cool, wet weather in broad parts of the region.

In North America, sales were slightly below the level of the prior second quarter owing to negative currency effects and lower prices. BASF was able to raise volumes slightly, thanks primarily to increased demand for the fungicides Xemium® and F500® in Canada and the United States.

Sales in Asia were slightly reduced by negative currency effects, which could not be offset by considerable volumes growth, especially of fungicides in China.

Lower volumes in the insecticides and fungicides businesses were primarily responsible for the considerable sales decline in South America. These in turn were largely attributable to high inventory levels and the still critical situation of many customers,especially in Brazil. BASF was only partly able to offset negative currency effects with price increases.

Compared with the second quarter of 2015, income from operations before special items fell considerably in the Agricultural Solutions segment, mainly on account of the lower sales volumes.