BASF Q1 net income more than double at 2.41 bn euros

BASF SE, the world's biggest chemicals firm, today said its first quarter net income more than doubled to 2.41 billion euros ($3.5 billion) on stronger sales.

The company, which has a significant presence in India, had clocked a net income of 1.02 billion euros in the January-March quarter of 2010, BASF said in a statement.

Sales climbed to 19.36 billion euros in the January-March quarter of 2011 from 15.45 billion euros in the year-ago period.

"Despite strong increases in raw materials costs, income from operations before special items rose by 40% to 2.7 billion euros," BASF Chairman Jurgen Hambrecht said.

 

The company said the Cognis businesses made a significant contribution to sales growth. Earnings before income and taxes (EBIT) grew 39% to 2.55 billion euros.

Both the chemicals and plastics division witnessed a 27% jump in sales, with operating profit from chemicals accelerating 66% and plastics earnings rising 41%.

The company has posted double-digit growth in all regions, with sales in the Asia-Pacific rising by 28%. In addition, earnings improved by 106 million euros to 416 million euros in the region as a result of higher prices and volumes.

Furthermore, sales in Europe were 24% higher than in the same period of the previous year, while they were up 21% up North America and registered 20% growth in South America, Africa and West Asia.

BASF said the earthquake that struck Japan and its aftermath as well as the tense political situation in North Africa have not yet had a significant impact on the company's business.

Looking ahead, BASF Group expects "significant sales growth in 2011".