BASF has reported strong earnings for the second quarter of 2022 with sales of €23 billion, a rise of 16.3 per cent, while net income was €2.1 billion, up 26.3 per cent over the prior-year quarter.
BASF said the increase in sales was mainly due to the significant price increases that the company was able to introduce in almost all segments.
In the Surface Technologies segment, sales of €5.4 billion were 7.6 per cent below the prior-year quarter. According to BASF, considerable sales growth in the Coatings division was unable to offset the strong decline in the Catalysts division. The year-on-year sales decrease was primarily due to significantly lower volumes in the Catalysts division, resulting mainly from weaker demand from the automotive industry due to insufficient semiconductor supply and the lockdowns in China.
“Despite the continued high raw materials and energy prices, we again achieved strong earnings in the second quarter,” said Dr Martin Brudermueller, Chairman of the Board of Executive Directors of BASF.
Based on the “very positive business development” in the first half of the year and adjusted assumptions, BASF forecasts sales growth of between €86 billion and €89 billion for the 2022 business year.
According to BASF, the war in Ukraine and its impact on energy and raw materials prices and the availability of raw materials, especially in Europe, may lead to additional headwinds. In particular, risks could arise from production stoppages at major European sites as a result of further restrictions to European gas supplies from Russia.
“In this case, the loss of European capacities could be partially compensated for by higher plant capacity utilisation at sites outside of Europe,” the company said. “Further risks could arise from the future course of the coronavirus pandemic and new measures to contain the number of infections. Opportunities could arise from continued high margins, even in the case of an economic slowdown. BASF is responding to the economic slowdown with cost reduction measures.”