BMS and BASF post positive Q2 results

BASF has achieved “a leap in earnings” due in part to recent organisational changes but also to improving market conditions, especially in the US and Asia. The German chemicals giant said earnings before tax and interest rose by 94% to €2.20bn in the second quarter, beating market expectations.

And the outlook for the remainder of the year is good said Jürgen Hambrecht, BASF’s CEO: “We expect our sales to grow in 2010 and outpace global chemical production. We anticipate that Ebit before special items will improve considerably and we will again earn a premium on our cost of capital.”

Bayer has reported solid Q2 revenues but recorded a 1.3% slip in earnings due to one-off charges for legal proceedings and a write-down on a cancer drug.

Revenues rose 14.6% to €9.2bn, up from €8bn, due largely to growth in its consumer health and high-tech materials divisions. But total earnings of €525m in the April to June period were down from €532m for the same period the previous year as a result of the one-off hits.

“MaterialScience has left the crisis behind and saw business expand more strongly than expected. Volumes have returned to the pre-crisis level,” said Bayer chairman Werner Wenning.

Bayer's MaterialScience division posted a very strong rise in quarterly revenue – up 46.9% to €2.7bn. Sales at HealthCare, meanwhile, improved slightly, while the subgroup’s earnings matched the prior-year level. CropScience was down year-on-year. That subgroup saw volumes and selling prices decline in a market environment made difficult by the competitive situation and unfavourable weather conditions.

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