BASF says Q2 operating income well above projections

FRANKFURT (Reuters) – German chemicals giant BASF said its operating income in the second quarter came in significantly above analyst expectations as it passed on higher raw material costs and benefited from a strong dollar

Quarterly earnings before interest, tax and special items was 2.34 billion euros ($2.36 billion), a touch below the 2.36 billion euros it earned a year earlier, BASF said in an unscheduled statement on Monday, citing preliminary figures.

BASF, which is scheduled to publish detailed results on July 27, said its full-year outlook remained unchanged.

Chief Executive Martin Burdermueller warned last month that while the group enjoyed strong pricing power during the first half, it would likely face a considerable downturn early in the second half of the year.

He warned at the time that inflation would begin to weigh on consumer demand and competitors are expected to reinstate crippled supply chains.

The group also said in a statement last month it was bracing for a massive increase in gas prices amid dwindling supplies from Russia.

Second quarter sales rose 16.3% to 22.97 billion euros, well above the market consensus.

(Reporting by Ludwig Burger; Editing by Hugh Lawson and Bernadette Baum)