Ludwigshafen, Germany (dpa-AFX) – BASF reported a 56-per-cent surge in second-quarter sales, largely driven by higher prices and volumes in all segments.
Sales for the quarter grew by 7.1 billion euros (8.38 billion dollars) to 19.8 billion euros from 12.7 billion euros generated in the prior year period.
Earnings before interest and taxes (EBIT) increased to 2.32 billion euros from 59 million euros last year.
EBIT, before special items, surged to 2.36 billion euros from 226 million euros reported in the same period of last year.
On a per share basis, earnings totalled 1.80 euros compared to a loss of 0.96 euros per share incurred a year ago.
Cash flows from operating activities amounted to 2.5 billion euros in the second quarter of 2021, 295 million euros above the prior-year quarter.
The improvement was mainly attributable to the considerably higher net income of 1.7 billion euros. At 1.8 billion euros, free cash flow increased by 254 million euros compared with the second quarter of 2020.
Dr Martin Brudermueller, chairman of the Board of Executive Directors of BASF, said: «Considerably higher earnings in our upstream businesses due to higher prices and volumes were the main driver for the strong increase in earnings overall. … In our downstream segments, we also managed to increase volumes and prices based on strong demand.»
Looking ahead, the company currently expects fiscal 2021 sales growth to be in the range of 74 billion euros – 77 billion euros, compared to the previously communicated range of 68 billion euros – 71 billion euros.
EBIT, before special items, is now expected to be between 7 billion euros and 7.5 billion euros, up from the prior guidance range of 5 billion euros – 5.8 billion euros.