In the first half of 2017, giants have all realized their business growth due to the soaring prices of chemical raw materials in the world. Moreover, the exchange rate changes have also played a positive role in the sales growth of many enterprises.
In 2017, the chemical industry rebounded as a whole, sales of major chemical companies, product sales have risen, driving the performance pick up a reality.First financial reporter learned from BASF, the company expected sales, excluding special items before interest and tax Earnings and EBIT will be significantly higher than last year's level, the performance of earnings far exceeded analysts' expectations.
Among them BASF annual sales reached 64.5 billion euros, compared with 57.6 billion euros in 2016 rose 12%, of which excluding pre-EBT excluding special items is expected to reach 8.3 billion euros, up 32% (2016: 63 Billion euros).
CBN reporter noted that BASF's year-on-year revenue growth was mainly driven by strong earnings from the chemical business segment: high sales and high profits from the business of monomers, petrochemicals and intermediates were the major factors, while oil and natural gas and The substantial increase in other business areas also boosted the BASF Group's extraordinary growth in EBIT excluding special items.
However, not all segments of the business achieved impressive results, with pre-tax earnings excluding exceptional items in the Specialty Products, Functional Materials and Solutions business segments below 2016 levels, and BASF attributing poor earnings to higher sales Prices do not fully compensate for the impact of rising raw material prices, as well as the rising fixed costs associated with the start-up of new plants, as pre-tax gains on non-special items in the agricultural solutions business were essentially the same as last year as a result of the substantial gains in the fourth quarter.
EBIT gain is expected to grow by 36% to EUR 8.5 billion (2016: EUR 6.3 billion) for the full year 2017. Net profit is expected to increase by 50% compared with 2016 to approximately EUR 6.1 billion (2016: 4.1 billion Euro.) Due to the US corporate income tax rate cut from 35% to 21%, the one-off non-cash deferred income tax revenue for the fourth quarter of 2017 was approximately 400 million euros.
BASF is constantly trying to diversify its business segment in 2017. Local time in Germany BASF announced on October 13 last year that it signed an agreement to acquire a significant portion of its Bayer seed and non-selective herbicides business Prior to the acquisition, BASF is the only agrochemical giant that currently has no seed business and from BASF's perspective the acquisition will be a strategic addition to BASF's crop protection business.
Another Costron, a material manufacturer born out of chemical giant Bayer, continued its positive momentum in the first half of 2017, creating the strongest quarter in company history in the third quarter of 2017. Net income rose by 89.6% from the third quarter of last year. To 491 million euros.
As Dow Chemical's chairman and CEO, Andrew Liveris, stated, the global economy has become increasingly active, manufacturing, investment and trade have demonstrated significant advantages. After the first financial reporter interviewed several companies, many companies also We agree with the above view that downstream businesses of chemicals such as automobiles, infrastructure, consumer care, electronics, and agriculture are all on the rise.
With BASF's announcement of a series of new rounds of investment in China, a new world-class automotive paint production plant with a total investment of 140 million euros has been completed and put into operation at Shanghai Chemical Industry Park in Caojing and its world-class chemical Catalyst production plant has also been officially completed in Shanghai, the first financial reporter learned from BASF, which is BASF's first set of chemical catalysts in the Asia Pacific production plant.
Optimistic about the Chinese market is a consistent BASF strategy BASF Asia Pacific and China President Dr. Stephan Kothrade earlier in an interview with First Financial said that BASF has expanded its production network to western China To Korla, Xinjiang and gradually increase its production base of MDI in Chongqing and its capacity utilization ratio of Guangdong Maoming Isononanol (INA) jointly built with Sinopec.
In an exclusive interview with CBN reporter, Bosell Skogum, president of Covestro China, said that the Chinese market has become an engine of growth in Covestro's performance and Covestro continues to invest more in China. As of now, In Fengxian District, Shanghai, a total value of 3.1 billion euros of the factory has been basically completed, is about to start the next step of innovation and development and marketing applications. Covestro will not only the Group's three major global business headquarters in polycarbonate moved to Shanghai, will R & D center in Asia Pacific in Shanghai Sheng Bing Yong told the first financial reporter: 'Covestro will continue to increase investment in Caojing' in the future.