BASF announced that its earnings before interest and tax decreased by 55% in the second quarter.
Germany BASF announced its financial report for the second quarter of 2009. BASF's sales and earnings in the second quarter were negatively affected by the continuing global economic crisis. The impact on the business is particularly prominent in the chemicals, plastics and functional solutions business areas, due to the sluggish status of the automotive and construction industries. Sales in the oil and gas business also fell, as natural gas sales fell and oil prices fell sharply. The company has a strong agricultural industry and has great expectations to undertake its real rubber related industry. Its product business has achieved high sales and revenue
at the performance release meeting in the first half and second quarter of 2009, Dr. Kurt Bock, chief financial officer of BASF, explained: "due to our success in reducing current assets and the measures we have implemented to increase efficiency and reduce costs, we were able to increase the cash provided by operating activities by € 1billion to € 3.6 billion in the first half of 2009 despite the significant decline in earnings." According to coating technology and abstracts, the sales volume of the company in the first half of 2009 decreased by 23% to 24.7 billion euros compared with the same period in 2008; Earnings before interest and tax (EBIT) excluding special items decreased by 55% to about 2.1 billion euros. In the second quarter of 2009, the sales volume decreased by 23% to 12.5 billion euros. The decrease in sales volume and the decline in price contributed 18% and 13% respectively, and the positive monetary factor contributed 3% to the sales volume. The Ciba business acquired on April 9 boosted sales by 5%. Excluding special items, high-end EBIT fell 53% to € 1.1 billion. However, both sales and pre tax earnings, excluding special items, were better than those in the previous quarterDr. Kurt bock said: "In a word, we believe that the decline seems to have reached the bottom, and the business is stable at a low level. The bottom in North America seems to have reached, and China is growing rapidly again. But we have not seen any signs of sustained recovery. Due to overcapacity, bankruptcy and increasing unemployment, there will be a new round of pain. SMM news: when the pressure of automobile fuel consumption is gradually pressing into a bitter recession."
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