German chemicals giant BASF reports profits based on price hikes

DPA – Yesterday 4:09 AM

German chemical company BASF said on Wednesday that it managed to boost net income by 26.3% in the second quarter thanks to “significant price increases.”

Net income came in at €2.1 billion ($2.13 billion). The comparison was with the second quarter of 2021.

“Despite the continued high raw materials and energy prices, we again achieved strong earnings in the second quarter,” said board chairperson Martin Brudermüller.

Like many industries, BASF is nervously watching rising gas prices spurred by Russia’s decision to limit shipments to Europe, a ruse that the West says is payback for Western sanctions. Those sanctions were laid down because of Russia’s invasion of Ukraine.

Gas is critical not only to power BASF factories, but is also a key ingredient in some processes. But the company reported strong sales to all of its key clients, except for the car sector, which has been hit hard by pandemic-related supply problems.

BASF also reported a 16.3% increase in sales to €23 billion. Earnings before interest and taxes (EBIT) came in at €2.3 billion, which matched levels in the the second quarter of 2021.

Sales in the chemicals segment grew 27.2%, while sales in the materials segment rose 29.9%. Sales in the industrial solutions segment rose by 12.1% and sales in the surface technologies segment increased by 7.6%. Nutrition and care segment sales rose by 30.9%.

Looking ahead to fiscal 2022, BASF now expects sales in the range of €86 billion-€89 billion, compared to prior outlook of €74 billion-€77 billion. EBIT before special items is expected between €6.8 billion and €7.2 billion.

https://www.msn.com/en-xl/news/other/german-chemicals-giant-basf-reports-profits-based-on-price-hikes/ar-AA100w8b