BASF SE says it more than doubled first-quarter earnings because of higher demand for its chemicals and plastics, which are used to make items as diverse as cars and cosmetics.
According to an Associated Press report:
BASF, the worldâ€™s biggest chemicals company, said Friday it earned â‚¬2.4 billion ($3.5 billion) in the January-March period, compared with â‚¬1.03 billion in the same quarter a year ago. Earnings of â‚¬1.94 per share beat analystsâ€™ estimates of â‚¬1.77 per share.
The company reported a 25 percent surge in sales to â‚¬19.4 billion from â‚¬15.4 billion. It said Cognis, the specialty chemicals firm it acquired in late 2010, made a â€œsignificant contributionâ€ to sales growth.
The German company, which produces crude oil in Libya, said that business had not yet been impacted by the turmoil in the country, even though it had to stop production in February and doesn’t expect to resume it this year.
The company’s press release described the growth in the plastics sector:
The Plastics segment experienced strong demand in all business areas; sales improved substantially compared with the first quarter of 2010 in particular as a result of higher sales volumes. Owing to the ongoing shortages of several products, higher raw materials costs could largely be passed on to the markets, especially in the Performance Polymers division. Thanks to high sales volumes, earnings increased sharply.
Source:Â ”Chemical company BASF doubles net profit, improves sales by 25 percent,” The Washington Post, 05/06/11
Rajendrani "Raj" Mukhopadhyay is a science writer and editor who contributes news stories and feature articles on scientific advances to a variety of magazines. Raj holds Ph.D. in biophysics from Johns Hopkins University.