Mixed Results for BASF


Mixed Results for BASF

BASFs performance products segment reported higher income from operations for the second quarter, while income from operations was down for its chemicals segment, compared to year-earlier results.

The companys performance products segment posted 486 million in income from operations in the second quarter, up 32 percent. The chemicals segment was down 15 percent at 467 million.

Sales in the performance products segment declined by 6 percent to 3.8 billion (U.S. $4.3 billion). A drop in prices was attributed to oil-price related declines in raw material costs. Under that segment, performance chemicals products include antioxidants, polyisobutene, lubricant additives and base stocks, compounds for metalworking fluids and compounded lubricants, among others.

In the second quarter, sales of performance chemicals to third parties declined 10 percent to 958 million. Although the performance chemicals division posted a considerable sales decline, sales volumes matched that of 2015s second quarter.

We were primarily able to increase sales volumes in the fuel and lubricant additive business, as well as in plastic additives, whereas demand declined in, for example, oilfield and mining chemicals, the company said in its half-year financial report.

Meanwhile, sales for BASFs chemicals segment to third parties reached 3.4 billion for the second quarter, down 15 percent from a year earlier. Under the segment, examples of products in the intermediates line include specialty amines; alkanolamines, which can be used in additives that lower the pour point of lubricating oils; and neopentyl glycol, which is used in synthetic lubricants.

In the second quarter, sales of intermediates to third parties totaled 680 million, down 8 percent from a year earlier.

In its earnings report, BASF noted it observed a considerable sales decline in the intermediates division, mainly as a result of lower prices weighed down by falling raw material costs. All product lines achieved higher sales volumes, especially poly alcohols and amines.

Photo: BASF SE

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