27 April 2012 06:51 [Source: ICIS news]
SINGAPORE (ICIS)--Germany’s BASF on Friday reported 28.5% year-on-year fall in its net income to €1.72bn ($2.26bn) in the first quarter of this year as higher raw material costs weighed on margins.
Its sales for the quarter rose by 6.3% year on year to €20.6bn on the back of higher sales prices and positive currency effects, while its earnings before interest, tax, depreciation and amortisation (EBITDA) was up by 15.6% to €3.89bn, the company said in a statement.
By contrast, the chemical major’s income from operations before special items decreased 7.3% to €2.53bn, the company said.
“Increased raw material costs could not be fully passed on in all business areas, which put pressure on margins,” BASF said.
The company expects the growth in the global economy to continue over the course of this year but said uncertainty on the financial markets threatens growth prospects.
“Positive stimulus for the chemical industry will mainly come from the emerging markets,” BASF said.
“We continue to aim to exceed the 2011 record levels in sales and income from operations,” it added.
($1 = €0.76)
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