BASF agchem sales decreased by 6% in Q1 2016

Date:05-04-2016

In a market environment that remains difficult, BASF posted a considerable sales decline of -6% in the Agricultural Solutions segment in the first quarter of 2016. Price increases could not compensate for lower sales volumes and negative currency effects (volumes –5%, prices 2%, and currencies 3%). Income from operations before special items improved slightly. The margins rose, partly as a result of higher prices, and fixed costs were reduced.

Reginal sales

Sales in Europe were slightly below the prior first-quarter levels on account of negative currency effects. These could not be fully offset by the higher volumes and prices achieved particularly for herbicides in Russia and Ukraine and for specialty crop fungicides in southern Europe.

Sales fell considerably in North America, due especially to declining demand for herbicides and fungicides. This was mostly owing to high inventory levels and cautious buying patterns on the part of customers.

Sales in Asia were down considerably compared with the previous first quarter, mostly because of lower volumes that were largely an effect of customers’ high inventory levels, especially in Japan and China.

These was a considerable volume and currency-related sales decline in South America as demand in Brazil – especially for insecticides and fungicides – fell sharply. This was to a large extent an effect of high inventory levels and the ongoing difficult environment for customers in Brazil.