BASF's sales in the second quarter of 19.8 billion euros, a 56% increase year-on-year

Recently, Dr.
Martin Brudermüller, Chairman of the Executive Board of BASF Europe, and Dr.
Hans-Ulrich Engel, BASF’s Chief Financial Officer, jointly released the financial results for the second quarter
.

Overall performance

Overall performance

BASF’s sales in the second quarter of 2021 were 19.
8 billion euros, an increase of 7.
1 billion euros over the same period last year
.

The 56% increase in sales was mainly due to the increase in sales and prices in various business areas

In the second quarter of 2021, EBIT, excluding special items, was 2.
4 billion euros, a significant increase of 1 billion euros from the second quarter of 2019 before the epidemic, and an increase of more than 2 billion euros from the second quarter of 2020
.

This is mainly due to the substantial increase in EBIT in the chemical business field and the material business field excluding special items

The increase in upstream business prices and sales volume resulted in a substantial increase in revenue
.

Thanks to strong market demand, we have also achieved an increase in sales and prices in the downstream business area

Cash flow in the second quarter of 2021 BASF's cash flow from operating activities in the second quarter of 2021 was 2.
5 billion euros, an increase of 295 million euros over the same period last year
.

This is mainly due to the substantial increase in net income to 1.

Income of each business area

Income of each business area

　　Sales in the chemical business area increased significantly by 91% from the same period last year to 3.
4 billion euros
.

This is mainly due to the lack of product supply leading to strong market demand, which has significantly increased the price level

　　Compared with the second quarter of 2020, the sales of the materials business in the second quarter of 2021 increased by 75% to 3.
7 billion euros, mainly due to the significant increase in sales driven by market demand
.

The pre-interest and tax earnings of its two business units, excluding special items, increased significantly to 792 million euros

　　In the second quarter of 2021, the industrial solutions business area had sales of 2.
4 billion euros, a significant increase from the same period last year, especially in the dispersions and pigments business unit
.

Almost all business sales of these two business units have increased, which has contributed to the increase in sales

　　Sales in the surface treatment technology business area were 5.
9 billion euros, a significant increase over the same period last year, especially in the catalyst business unit
.

90% of the sales growth was due to the significant increase in overall prices and sales

　　Sales in the nutrition and care business area increased by 2% from the same period last year to 1.
6 billion euros
.
This is mainly due to the substantial increase in sales of the care chemicals business unit, while the sales of the nutrition and health business unit have dropped significantly
.
The EBIT of the nutrition and care business field excluding special items was 138 million euros, a sharp drop from the same period last year.
This was mainly due to the decline in profits and the increase in fixed costs of its next two business units
.

　　Sales in the agricultural solutions business area were 2 billion euros, a significant increase from the same period last year, mainly due to the substantial increase in sales (in all regions of the world) and prices
.
Unfavorable currency factors have played a certain offset, especially in the South American and North American markets
.
Although sales increased significantly, the EBIT excluding special items was 75 million euros, which was a significant drop from the same period last year, mainly due to unfavorable currency factors and increased fixed costs
.
Sales in other business areas increased significantly from the same period last year to 793 million euros, mainly due to the increase in sales of bulk commodities
.
Earnings before interest and taxes excluding special items were significantly lower than the same period last year, mainly due to the strong performance in the second quarter of 2021, which led to an increase in the variable compensation component (bonus) reserve
.

       Full year outlook

Full year outlook

       BASF Group's 2021 fiscal year BASF's assessment of the global economic environment in 2021 is adjusted as follows (in parentheses are BASF's 2021 quarterly report forecast):

　　Global GDP growth: 5.
5% (5.
0%)

　　Global chemical production growth: 6.
5% (5.
0%)

　　Euro to U.
S.
Dollar: 1 Euro to 1.
20 U.
S.
dollars (1.
18 U.
S.
dollars)

　　Brent crude oil price: US$65/barrel (US$60/barrel)

　　Based on the outstanding performance in the first half of 2021, the continued improvement of the global economy, and the substantial increase in revenue expectations in the chemical business and materials business, BASF's 2021 full-year outlook is adjusted as follows:

　　BASF expects stable industrial economic development in the second half of 2021
.
The above forecast by BASF assumes that there will be no strict measures to control economic activities in response to the new crown epidemic in the second half of 2021
.