A BASF Blurb Of Bad News

BASF is doing allright. Maybe a few glitches in the Ag Unit. Again notice the Brazil reference.


"UPDATE: BASF 2Q Net Profit Up 18.3%; Oil
By Gangolf Schrimpf
Of DOW JONES NEWSWIRES

FRANKFURT -(Dow Jones)- BASF AG (BF) Wednesday showed a 18.3% rise in second
quarter net profit, driven once again mainly by its oil and gas division.
The world's largest chemicals company by sales said net profit came in at
EUR920 million from EUR778 million a year ago and above analysts' projection of
EUR849 million.
BASF's earnings were driven by its oil and gas segment, which reported a
second quarter EBIT before items of EUR868 million from EUR579 million a year
ago."
Pretty good so far, but read on"
"The agrochemicals and fine chemicals unit reported an EBIT before items
decline of 39% on the year and 18.3% on the first quarter. BASF cited a drop in
volumes by 6% and the depreciation of the Brazilian real as reasons.
BASF agrochemichals unit head Michael Heinz warned in an interview with Dow
Jones Newswires in June that the industry faced "a difficult year" and that it
would make it difficult to reach its full-year margin goal.
BASF's chemicals segment reported second quarter EBIT before items of EUR351
million, down 15% on the year, but up 10.7% on the first quarter.
BASF's performance products' EBIT before items was down 23% on the second
quarter of last year and down 15.7% on the first quarter. Here the company said
rising raw material costs negatively affected the unit"
Company website: http://www.basf.com
- By Gangolf Schrimpf, Dow Jones Newswires, + 49 69 29 725 500,
gangolf.schrimpf@dowjones.com

(END) Dow Jones Newswires
08-02-06 0251ET
Copyright (c) 2006 Dow Jones & Company, Inc.- - 02 51 AM EDT 08-02-06