BASF agchem sales flat in Q2 2015

Date:07-28-2015

BASF Agricultural Solutions segment, sales slightly increased by 0.7% to €1,678 million in the second quarter of 2015. The result was due to positive currency effects and higher sales prices, while volumes declined (volumes –8%, prices 3%, currencies 6%). EBIT before special items fell by 15.7% to €365 million. This was largely because of lower sales volumes and increased fixed costs through the startup of new plants.


Regional sales

In Europe, sales were slightly down compared with the second quarter of 2014. Higher prices, especially in eastern Europe, were unable to fully compensate for declining sales volumes. Volumes were lower for cereal fungicides due to strong demand at the beginning of the season as well as the ongoing drought in western Europe.

Sales in North America were slightly above the prior second-quarter level on account of positive currency effects. BASF customers’ above-average inventory levels and dry weather conditions in Canada and California resulted in a decrease in sales volumes of fungicides.

South America saw a slight increase in sales, particularly driven by higher prices and volumes in our fungicides business and in the Functional Crop Care business unit. This enabled us to more than offset the weaker demand for insecticides brought about by high competitive pressure from generic products.

In Asia, sales considerably surpassed the level of the previous second quarter due to positive currency effects. Sales volumes declined overall, mainly as a consequence of substantially lower demand for herbicides in India. BASF raised its volumes in Japan and Korea.

Sales in H1 2015

Sales in the first half year 2015 grew by 7.7% to €3,576 million Y-O-Y, despite a slight decrease in volumes. EBIT before special items dipped by 0.4% to €939 million.

In terms of region, the sales in Europe were still the largest among all the regions in H1 2015, accounting for 45% of the total, followed by North America with 36% of the total sales, and South America, Africa, Middle East and Asia Pacific contributed to 10% and 9% of the total sales respectively.

As for product category, fungicides were the largest category, representing 44% of the total sales, followed by Herbicides(41%), Insecticides (9%), and Functional Crop Care (6%).