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In the second quarter of 2016, BASF saw a slight improvement in the macroeconomic environment. The increase in oil price and pickup in demand, since the end of March, underline this development. "We experienced robust demand, especially from the automotive and construction industries. However, the macroeconomic situation remains difficult to predict,” said Dr Kurt Bock, Chairman of the Board of Executive Directors of BASF SE.
Sales of BASF Group decreased by 24% in the second quarter to €14.5bn compared with the same period of 2015. Two-thirds of this decline were the result of portfolio effects (-16%). These were mainly due to the divestiture of the gas trading and storage business as part of the asset swap with Gazprom at the end of September 2015. In addition, lower raw material prices, especially in the Chemicals segment, led to a drop in sales prices (-7%). In the chemicals business, which comprises the Chemicals, Performance Products and Functional Materials & Solutions segments, volumes rose 4%. There were negative currency effects in all divisions (-3%).
For 2016, the company anticipates a continuation of the currently challenging market conditions along with substantial risks. BASF’s expectations for the global economic environment in 2016 remain unchanged.
