THE WHAT? BASF has released preliminary figures on business development in the second quarter of 2020 which appear to show that the specialty chemicals manufacturer has beaten expectations, despite the automotive industry’s GVC-related woes.
THE DETAILS Sales were down 12.4 percent in the second quarter to €12,680 million compared to €14,478 million in the same period in 2019 but above the widely anticipated €11.8 billion, per Bloomberg.
EBIT before special items came in above market expectations at €226 million. Analysts had pegged the sum at €146 million, Bloomberg reports.
THE WHY? The ingredients supplier said that its nutrition and personal care business was helping to soften the slump in automotive demand. ‘Year-on-year earnings growth in the Nutrition & Care segment and in Other had an offsetting effect,’ the company wrote in a statement. ‘Earnings in the Agricultural Solutions segment were at the level of the prior-year quarter.