chemical company BASF sales of chemicals in China

China's weakness dampens optimism at chemical company BASF
Ludwigshafen (AP) - The economic slowdown in Europe and a significant decline in demand in China have hit the world's largest chemicals company BASF cautious tones. The economic climate has become rougher, said CEO Kurt Bock on Thursday at the presentation of the half-year figures.

BASF will feel the effects of the debt crisis in sales and sales in Europe, also stutter the growth engine in China. However, Bock was sticking to its forecast that 2012 complete with record results.

At the finish, the peak values ​​of 2011 sales and earnings before interest and taxes (EBIT) and special items to meet again, the Group focuses primarily on the resumption of oil production in Libya. The plants were last year, from February to October because of political unrest still, since it comes up there again.

A lower annual earnings forecast block for the chemical industry, which declined even in the first half of the year: "Our customers continue to act cautiously, they further reduce their inventories." The company expects no longer with the fact that continued demand for its products in the coming months increases. The slump in China would last for three quarters already. Not an end in sight, said Bock.


In the second quarter of BASF's profits fell by almost 16 percent to 1.2 billion €. The decline led the Group to significantly higher taxes due to the re-approached oil production in Libya. Earnings before interest and taxes (EBIT) and special items increased by eleven percent to 2.5 billion euros, well it was mainly in the oil and gas business and agro-chemicals. Revenues climbed by nearly six percent to 19.5 billion euros - again, the Group benefited from the oil from Libya.

Bock announced that it would accelerate cost-cutting measures and issues to be put under scrutiny. Thus, in the emerging markets should be set only once fewer staff than planned. Bock also called on politicians in Germany, not to cause additional costs to the energy transition: "The competitiveness of German industry should not be burdened even more." End of June 2012, BASF employed 111 995 employees, almost 2,000 more than last year.