BASF says Q2 profit up by 23% at 1.45 billion euros

28th July 2011, Comments 0 comments

German chemical giant BASF said Thursday that its second quarter net profit gained nearly 23 percent to 1.45 billion euros ($2.1 billion), and confirmed its full-year outlook.

The result, which came on sales that rose by 14 percent from the same period a year earlier to 18.5 billion euros, was roughly in line with an average analyst forecast compiled by Dow Jones Newswires of 1.5 billion euros.

BASF chief executive Kurt Bock, who took over in May, voiced caution however owing to the euro's strong value against the dollar, and debt crises in the eurozone and the United States.

"We continue to be concerned about the development of the euro as well as the debt situation in some European countries and the United States," a statement quoted Bock as saying.

High oil prices had also weighed on new orders, he added.

BASF nonetheless still expects "significant sales growth" this year, and forecast higher core earnings before interest and taxes (EBIT) before special items than last year's figure of 8.1 billion euros.

Meanwhile, core earnings gained around seven percent in the second quarter to 2.22 billion euros.

The group said that "price increases were necessary in several business areas and will continue in the future."

© 2011 AFP

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