Weak Currencies Drag BASF Agricultural Solutions Business

Posted by Jackie Pucci|24 July 2014

BASF said on Thursday that negative currency effects hurt BASF’s second-quarter crop protection results, which saw a 4% drop in sales.

“Sales prices could be raised in all regions. Volumes remained stable,” BASF said.

EBIT before special items in the second quarter fell $70 million to $583 million a year earlier.

For the first half of 2014, sales in the Agricultural Solutions segment — which comprises its crop protection products — grew slightly compared with a year ago, on higher volumes and sales prices which more than compensated for currency effects. First-half EBIT before special items totaled $1.27 billion for the segment, down from $1.32 billion a year earlier, due to currency effects and higher research expenses.

For the full year, it now expects “weaker growth in the global economy than was foreseen six months ago,” BASF said in a statement, referring to the company as a whole. “The weakness of relevant major currencies is an additional burden.”