BASF registered considerable revenue growth in the April-June second quarter of 2017. Sales rose by 12 per cent to €16.3 billion compared to Q2 2016. This was mainly due to higher prices and volumes. Amid higher raw material costs, the company raised sales prices by 7 per cent; this was mainly driven by higher prices in the chemicals segment. Sales volumes increased by three per cent.
Income from operations (EBIT) before special items in the second quarter rose by 32 per cent year-on-year to €2.3 billion. At €1.5 billion, net income exceeded the previous second-quarter level by €404 million. Earnings per share were €1.63 in the second quarter of 2017, compared with €1.19 in the same quarter of the previous year. Cash provided by operating activities improved from €2.3 billion in the second quarter of 2016 to €3.0 billion in the second quarter of 2017. Free cash flow amounted to €2.1 billion, compared to €1.3 billion in the same quarter of the previous year. This improvement was largely the result of higher net income, the company said.
“We continue to expect a considerable increase in sales for the full year – by at least six per cent. Given the considerable earnings increase in the first six months of the year, we now expect a considerable increase in EBIT before special items of at least 11 per cent for 2017. We expect a slight increase in EBIT before special items for the second half of 2017. This forecast takes into account the good development in the Chemicals segment,” said Dr. Kurt Bock, Chairman of the Board of Executive Directors of BASF.