Higher sales and prices deliver strong first quarter for BASF
FRANKFURT AM MAIN, April 27, 2017 (AFP) - German chemicals giant BASF said Thursday it had boosted sales and profits in the first quarter, but stuck to a cautious forecast for the full year.
The group's net profit grew 23 per cent to 1.7 billion euros ($1.85 billion), higher than forecast by analysts, on the back of sales that rose 19 per cent to 16.9 billion euros.
Operating, or underlying profit before interest and taxes made even larger gains, rising 29 per cent to reach 2.5 billion euros.
"BASF had a good start to the year," said chief executive Kurt Bock. "The demand trends we observed over the course of 2016 continued in the first quarter."
Some 2.0 billion euros of BASF's operating profit was generated by its chemicals businesses, all of which boosted sales and earnings.
While the group's oil and gas division also increased profits, earnings at the agrochemical unit fell back compared with the first three months of 2016.
BASF also reported a one-off insurance payment of 100 million euros over a massive explosion that struck its main factory in Ludwigshafen, western Germany in October, killing four people in the blast and subsequent fire.
