BASF posts flat agrochem sales in the first-half year

Date:08-03-2011

BASF’s Agricultural Solutions segment posted flat sales in the second quarter of 2011, decreased to€1,205 million (€1,211 million in Q2 2010). Sales in volumes increased by 6%, volumes grew particularly in fungicides business. With stable sales prices, sales reached the good level of the previous second quarter despite negative currency effects. Although weather conditions in Europe and North America were unfavorable, earnings were slightly above the level of the same period of the previous year. The first half year sales grew by 3% to €2,435 million (€2,356 million in the first half year of 2010).

BASF's agricultural solutions sales results (€ million)
Q2 ended June 30th	Q2 2011	Q2 2010	%change	1st-half 2011	1st-half 2010	%change
sales	1,205	1,211	0	2,435	2,356	3
EBITDA	373	370	1	757	739	2
EBIT	331	320	3	674	641	5

Fungicides remained the largest category, accounting for 46% of total sales. Herbicides accounts for 37% and insecticide/other 17%.

Sale volumes in the Agricultural Solutions segment, particularly for fungicides, increased year-on-year thanks to strong global demand for agricultural products. Negative currency effects were offset by higher volumes. With sales prices stable, sales nearly reached the good level of the previous second quarter (volumes 6%, prices 0%, currencies –6%).

Sales in Europe exceeded the level of the previous second quarter despite the dry weather in Western Europe because of the strong demand in Eastern Europe. The weaker U.S. dollar was particularly responsible for the decline in sales in North America. In addition, flooding resulted in a decrease in cultivated acreage, which led to lower demand for herbicides. In contrast, sales volumes of fungicides increased.

Sales in South America increased due in part to good demand for herbicide tolerance technology Clearfield  as well as for insecticides for sugarcane and seed treatment.

In Asia, sales were considerably above the level of the second quarter of 2010, which was mainly attributable to the positive development of the herbicide business.