07.28.21
BASF reported its second quarter 2021 results.
Sales growth was 56% to €19.8 billion,, with EBIT before special items increasing significantly to €2.4 billion. Cash flows from operating activities were €2.5 billion, up €295 million over level of prior-year quarter. The 2021 outlook for sales raised to between €74 billion and €77 billion and for EBIT before special items to between €7 billion and €7.5 billion.
“The strong growth momentum of the previous two quarters has continued: Thanks to higher prices and volumes, we can present very strong second-quarter results today,” said Dr. Martin Brudermüller, chairman of the board of Executive Directors of BASF SE, who presented the second-quarter results together with CFO Dr. Hans-Ulrich Engel. “We achieved volumes growth and price increases across all regions and all segments compared with the second quarter of 2020.”
Sales increased by €7.1 billion compared with the second quarter of 2020 to €19.8 billion. This sales growth of 56% was largely attributable to higher prices and volumes in all segments. Price levels in the Surface Technologies, Chemicals and Materials segments in particular increased, while volumes grew primarily in the Surface Technologies, Materials and Industrial Solutions segments.
Income from operations (EBIT) before special items in the second quarter of 2021 was considerably higher than the pre-pandemic level of €1 billion in the second quarter of 2019 and increased compared with the prior-year quarter by more than €2 billion to reach €2.4 billion. This was mainly attributable to the considerable rise in EBIT before special items in the Chemicals and Materials segments.
EBIT increased from €59 million in the second quarter of 2020 to €2.3 billion. Income from operations before depreciation, amortization and special items (EBITDA before special items) increased by €2 billion compared with the second quarter of 2020 to €3.2 billion. EBITDA grew by €2.1 billion to reach €3.2 billion.
“Considerably higher earnings in our upstream businesses due to higher prices and volumes were the main driver for the strong increase in earnings overall,” said Brudermüller. “In our downstream segments, we also managed to increase volumes and prices based on strong demand.”
Cash flows from operating activities amounted to €2.5 billion in the second quarter of 2021, €295 million above the figure for the prior-year quarter. The improvement was mainly attributable to the considerably higher net income of €1.7 billion. At €1.8 billion, free cash flow increased by €254 million compared with the second quarter of 2020.
Sales in the Chemicals segment rose considerably by 91% compared with the prior-year quarter to €3.4 billion. The sales increase was primarily due to significantly higher price levels, owing largely to strong demand alongside lower product availability. EBIT before special items of €990 million was considerably above the level of the second quarter of 2020.
Compared with the second quarter of 2020, sales in the Materials segment rose by 75% to €3.7 billion. Sales development resulted primarily from a significant demand-related increase in volumes. At €792 million in total, EBIT before special items rose considerably in both divisions.
Sales of €2.4 billion in the Industrial Solutions segment in the second quarter of 2021 were considerably higher than in the prior-year quarter, particularly in the Dispersions & Pigments division. The sales growth was largely attributable to higher volumes in almost all businesses in both divisions. EBIT before special items rose considerably in both divisions compared with the second quarter of 2020 and amounted to €307 million. The Dispersions & Pigments division was renamed Dispersions & Resins as of July 1, 2021 following the closing of the divestiture of BASF’s global pigments business.
Sales growth was 56% to €19.8 billion,, with EBIT before special items increasing significantly to €2.4 billion. Cash flows from operating activities were €2.5 billion, up €295 million over level of prior-year quarter. The 2021 outlook for sales raised to between €74 billion and €77 billion and for EBIT before special items to between €7 billion and €7.5 billion.
“The strong growth momentum of the previous two quarters has continued: Thanks to higher prices and volumes, we can present very strong second-quarter results today,” said Dr. Martin Brudermüller, chairman of the board of Executive Directors of BASF SE, who presented the second-quarter results together with CFO Dr. Hans-Ulrich Engel. “We achieved volumes growth and price increases across all regions and all segments compared with the second quarter of 2020.”
Sales increased by €7.1 billion compared with the second quarter of 2020 to €19.8 billion. This sales growth of 56% was largely attributable to higher prices and volumes in all segments. Price levels in the Surface Technologies, Chemicals and Materials segments in particular increased, while volumes grew primarily in the Surface Technologies, Materials and Industrial Solutions segments.
Income from operations (EBIT) before special items in the second quarter of 2021 was considerably higher than the pre-pandemic level of €1 billion in the second quarter of 2019 and increased compared with the prior-year quarter by more than €2 billion to reach €2.4 billion. This was mainly attributable to the considerable rise in EBIT before special items in the Chemicals and Materials segments.
EBIT increased from €59 million in the second quarter of 2020 to €2.3 billion. Income from operations before depreciation, amortization and special items (EBITDA before special items) increased by €2 billion compared with the second quarter of 2020 to €3.2 billion. EBITDA grew by €2.1 billion to reach €3.2 billion.
“Considerably higher earnings in our upstream businesses due to higher prices and volumes were the main driver for the strong increase in earnings overall,” said Brudermüller. “In our downstream segments, we also managed to increase volumes and prices based on strong demand.”
Cash flows from operating activities amounted to €2.5 billion in the second quarter of 2021, €295 million above the figure for the prior-year quarter. The improvement was mainly attributable to the considerably higher net income of €1.7 billion. At €1.8 billion, free cash flow increased by €254 million compared with the second quarter of 2020.
Sales in the Chemicals segment rose considerably by 91% compared with the prior-year quarter to €3.4 billion. The sales increase was primarily due to significantly higher price levels, owing largely to strong demand alongside lower product availability. EBIT before special items of €990 million was considerably above the level of the second quarter of 2020.
Compared with the second quarter of 2020, sales in the Materials segment rose by 75% to €3.7 billion. Sales development resulted primarily from a significant demand-related increase in volumes. At €792 million in total, EBIT before special items rose considerably in both divisions.
Sales of €2.4 billion in the Industrial Solutions segment in the second quarter of 2021 were considerably higher than in the prior-year quarter, particularly in the Dispersions & Pigments division. The sales growth was largely attributable to higher volumes in almost all businesses in both divisions. EBIT before special items rose considerably in both divisions compared with the second quarter of 2020 and amounted to €307 million. The Dispersions & Pigments division was renamed Dispersions & Resins as of July 1, 2021 following the closing of the divestiture of BASF’s global pigments business.
