Strong U.S. Dollar, Fungicide Demand in Europe Drive BASF Q1 Results
30 April 2015 BASF posted a 15% rise in first-quarter sales to $1.9 billion, on strength in Europe and North America.
“We raised volumes in all indications. Positive currency effects and higher prices additionally boosted this sales growth (volumes 6%, prices 4%, currencies 5%),” BASF said.
In Europe, sales were considerably higher on earlier-than-expected demand, particularly for cereal fungicides in western Europe. Business was very positive, especially in the United Kingdom and Germany, BASF said, it was able to more than compensate for negative currency effects by increasing volumes and prices.
Sales rose considerably in North America, as well, largely supported by the strong U.S. dollar. The company increased volumes and prices for herbicides, especially in its Kixor and dicamba businesses.
Sales in Asia matched the level of the previous first quarter. Growth in China and Australia, together with positive currency effects, were able to offset the decline in Japan, where the previous first quarter had seen an extraordinarily sharp rise in sales. This had arisen from the increase in value-added tax in April 2014, which was responsible for advance purchases on the part of its customers.
Sales in South America fell slightly below the level of the first quarter of 2014. In Brazil, fungicide volumes declined mainly because of a lower incidence of fungal infections, and volumes of insecticides decreased on account of competition from generic products.
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