BASF’s agricultural solutions sales up 7% in Q1 2011

In the Agricultural Solutions segment, BASF announces company had a successful start to the season. Sales volumes grew in nearly all regions and indications led this division to a 7% sales growth in the first quarter of 2011 to €1230 million. As a result of favorable weather conditions in the northern hemisphere and in South America, demand for our products rose. Despite intense competition, we were able to slightly exceed the high sales level of the first quarter of 2010. Greater sales volumes led to a slight improvement in earnings.

Sales exceeded the level of the first quarter of 2010 in all regions and all indications (volumes 8%, prices –2%, currencies 1%). This was attributable to the early season start in the northern hemisphere and the related increase in demand for fungicides. Furthermore, positive currency effects contributed to sales growth. This more than compensated for slightly declining sales prices for some products.

In Europe, the new growing season started well, particularly in Germany and the growth markets of Eastern Europe. The increase in sales was largely a result of stronger demand for fungicides and oilseed herbicides.

In North America, demand was strong at the start of the season, owing in particular to high prices for agricultural commodities. Sales rose compared with the same quarter of 2010, primarily thanks to stronger sales volumes of fungicides and seed treatments.

Sales in Asia grew significantly as a result of high demand for fungicides and herbicides. Positive currency effects additionally boosted sales growth.

Sales in South America were above the level of the first quarter of 2010. Demand for fungicides and insecticides continued to be high at the end of the growing season; the increased sales volumes contributed significantly to the improvement in sales.

Income from operations before special items rose slightly compared with the first quarter of 2010 thanks to good demand for our innovative products.
Earnings growth was slowed by currency-related cost increases, in particular as a result of the appreciation of the Brazilian real.