BERLIN, July 29 (Xinhua) -- The German chemical giant BASF announced on Wednesday that its earnings before interest and taxes (EBIT) before special items plummeted by 77 percent year-on-year to 226 million euros (265.2 million U.S. dollars) in the second quarter (Q2) of 2020 due to "weaker demand as a result of the coronavirus pandemic."
The COVID-19 pandemic remained a "huge challenge for all of us," said Martin Brudermueller, chairman of the board of executive directors of BASF, noting that "this situation is a catalyst for change and a chance to do many things differently."
Sales of BASF decreased by 12 percent to 12.7 billion euros, primarily attributable to lower sales volumes of minus 11 percent. Higher prices in the company's surface technologies and agricultural solutions segments could only "partially offset" this.
BASF's chemicals and materials segments accounted for 70 percent of the decline in EBIT. Earnings from agriculture solutions segment nearly matched the level of the prior-year quarter while the company's nutrition and care division managed to increase earnings in Q2.
For the third quarter, BASF did not expect EBIT before special items to "improve significantly" due to lower demand in August and the seasonality of the agricultural solutions business.
Given the "continued high level of uncertainty and low visibility surrounding economic developments," BASF refrained from publishing a forecast for the development of sales and earnings for the full year 2020. Enditem
