LUDWIGSHAFEN, GERMANY (July 28, 1:30 p.m. ET) — BASF SE says its half-year figures prove its business remains “dynamic.”
“The economic environment in the first half of 2011 was favorable for our business. Our numbers show that we successfully took advantage of this momentum,” said Chairman Kurt Bock.
Second quarter earnings before interest and taxation and one-off items increased by 1.4 percent to 2.2 billion euros after BASF was forced to suspend its activities in Libya, which last year contributed around 280 million euros.
BASF continues to view the economic outlook as positive for the second half of 2011, but expects growth to be less dynamic, a trend that could be observed towards the end of the second quarter.
Bock said: “The economic risks remain: 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. Added to this is the persistently high oil price, which is having a negative impact on margins across our value chains and is leading to some customers being more cautious in their orders.
“Based on the positive business growth in the first half, we remain confident for 2011,” he continued. “Despite the reduction in oil production, we expect significant sales growth for the BASF group in 2011.”