BASF agrochem sales rose 8% in Q1

BASF’s Agricultural Solutions segment had a very successful start to 2012. The sales were up 7.9% to €1,327 million in the first quarter of 2012. Sales growth was particularly driven by higher sales volumes (3% up) and prices (3% up). Currency effects also had a positive impact on sales (2% up). Earnings before interest, tax, depreciation and amortization (EBITDA) increased 19.5% to €459 million, and earnings before interest and tax (EBIT) rose by 22.2% to €419 million.

The early start to the season in North America due to weather conditions led to an improvement in sales, particularly for herbicides.

The season also began positively in Europe. The company’s new fungicide, Xemium, was successfully launched in Germany, France and the United Kingdom in 2011 (AgroNews 2011-10-26). Higher sales prices also contributed to sales growth, and the company continued to strengthen their business in the growth markets of Eastern Europe.

An early start to the herbicide season improved sales in North America. The company’s business with products for plant health also developed well. Positive currency effects additionally supported sales growth.

BASF posted a slight decline in sales in Asia. Higher demand in China was not able to fully compensate for the weaker season in Japan.

Sales increase in South America was contributed to strong demand for insecticides based on the active ingredient fipronil. However, sustained drought in the southern regions had a negative effect on sales development.