BASF blames price cuts for performance chemicals revenue decline
27/07/2016
It attributed the decline to its divestiture of its gas trading and storage business, and to lower prices for its products.
BASF gives no specific figure for the results of its leather chemicals business; it reports its results for leather as part of its performance products segment.
With revenues for the quarter of more than €3.8 billion, performance products suffered a smaller decline (6%) than BASF’s overall business. This segment’s revenues for the first half of 2016 are also down by 6% year on year at just over €7.6 billion.
However, the performance chemicals division within the performance products segment, which includes chemicals for the leather industry, experienced a decline of 10% for the first half of this year, with revenues for the six-month period of €1.9 billion.
The company explained on releasing the results that decline in revenues from sales of performance chemicals owed much to BASF’s divestiture (completed in July 2015) of its textile chemicals business, which it has sold to Archroma.
It said the volume of performance chemicals sold matched the levels of the corresponding period last year. However, owing to lower prices, these sales brought in lower revenues.
Image: BASF SE
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