27 July 2017
ABOUT BASF H1 2017 PRESENTATION
VIEW BASF H1 2017 FULL PRESENATATION
DETAILS
At €1.5 billion, net income exceeded
the previous second-quarter level by €404 million.
Earnings per share were €1.63 in the second quarter of 2017,
compared with €1.19 in the same quarter of the previous year.
Adjusted for special items and amortization of intangible assets,
earnings per share amounted to €1.78 (same period of 2016: €1.30).
Cash provided by operating activities improved
from €2.3 billion in the second quarter of 2016
to €3.0 billion in the second quarter of 2017.
Free cash flow amounted to €2.1 billion,
compared with €1.3 billion
in the same quarter of the previous year.
This improvement was largely
the result of higher net income.
Income from operations (EBIT) before special items
in the second quarter rose by 32% year-on-year to €2.3 billion.
The sharp rise was primarily a result of
the substantially improved earnings
in the Chemicals and Oil & Gas segments.
This increase was dampened by lower earnings in
the Performance Products,
Functional Materials & Solutions and
Agricultural Solutions segments.
The negative impact on earnings caused
by the North Harbor accident at the Ludwigshafen
site in October 2016 was compensated
for by an insurance payment of €100 million,
an amount which was predominantly booked
in the Chemicals segment.
BASF Group sales rose by 12% to €16.3 billion
compared with the second quarter of 2016.
This was largely attributable to higher prices and volumes.
Amid higher raw material costs, the company
raised sales prices by 7%; this was mainly driven
by higher prices in the Chemicals segment.
Sales volumes increased by 3%. Currency effects
had a positive impact on sales and,
like portfolio effects, accounted for a 1% increase.
Dr. Kurt Bock,
Chairman of the Board of Executive Directors of BASF SE
“The positive demand trend continued
in the second quarter of 2017.
We increased our year-on-year sales volumes
for the fifth consecutive quarter.
Compared with the same quarter of last year,
we considerably improved our sales and earnings,”
Outlook for the year 2017
Because of the positive macroeconomic development
in the first half of the year, BASF now takes
a somewhat more positive overall view
of the underlying conditions for 2017.
The company’s expectations
for the global economic environment in 2017
are as follows (previous forecast in parentheses):
- Growth in gross domestic product: 2.5% (2.3%)
- Growth in industrial production: 2.5% (2.3%)
- Growth in chemical production: 3.4% (unchanged)
- Average euro/dollar exchange rate
of $1.10 per euro ($1.05 per euro) - Average Brent blend oil price
for the year of $50 per barrel ($55 per barrel)
Dr. Kurt Bock,
Chairman of the Board of Executive Directors of BASF SE
“We continue to expect a considerable increase in sales for the full year
– by at least 6%. Given the considerable earnings increase
in the first six months of the year, we now expect
a considerable increase in EBIT before special items
of at least 11% for 2017,” said Bock.
“For the second half of 2017, we expect a slight increase in EBIT
before special items in comparison to the same period of 2016.
This forecast takes into account the good development
in the Chemicals segment in the first half of 2017,
which will likely lose momentum, as well as
the weaker than originally expected oil price and U.S. dollar.
These factors have a negative impact on BASF’s earnings,”
Contact BASF
Corporate Communications
Juliana Ernst
Phone: +49 621 60-99223
juliana.ernst@basf.com
Investor Relations
Dr. Stefanie Wettberg
Phone: +49 621 60-48002
stefanie.wettberg@basf.com
WWW.CHEMWINFO.COM BY KHUN PHICHAI
- Juliana Ernst
- Head of Media Relations
- +49 621 60-99223
- Send Mail
- Dr. Stefanie Wettberg
- S
