29 July 2010 06:56 [Source: ICIS news]
LONDON (ICIS)--BASF's second-quarter net profits leapt to €1.18bn ($1.53bn) from €343m in the same period a year earlier on much higher sales of chemicals, plastics and performance products, the chemicals giant said on Thursday.
Chemicals sales were up 64%, plastics sales jumped 48% and performance products sales grew 29%, helping to push group sales 30% higher to €16.21bn.
BASF said that it had seen higher demand compared with the weak 2009 second quarter and that earnings strength in the chemicals business had “improved sustainably”.
Second-quarter 2010 earnings before interest and tax before special items were up 94% year on year at €2.21bn.
BASF chairman Jurgen Hambrecht said he expected the economic recovery to continue at a moderate pace in the second half of 2010.
“We expect our sales to grow in 2010 and outpace global chemical production,” he added.
“We anticipate that EBIT before special items will improve considerably and we will again earn a premium on our cost of capital. According to our dividend policy, we expect a higher dividend for 2010.”
($1 = €0.77)
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