BASF Harmed by Weaker US Dollar, Brazilian Real in 1Q -- Currency Comment
April 29 2021 - 11:41AM
Dow Jones News
By Mauro Orru
BASF SE's first-quarter sales rose 16% on year to EUR19.4
billion, but all segments were dampened by currency effects, mostly
due to a weaker U.S. dollar and Brazilian real.
The German chemicals company had assumed the euro would average
$1.18 against the dollar in the first quarter.
Barring a few days at the end of March, the euro traded above
$1.18 for that period and was above $1.20 for most of January and
February. Its closing level on March 31 was $1.1731, according to
FactSet.
"Currency effects of minus 6 percent were mainly related to the
devaluation of the U.S. dollar as well as the Brazilian real," a
BASF spokesman tells Dow Jones, adding these were most pronounced
in the Surface Technologies and in Agricultural Solutions
segments.
Sales in the Agricultural Solutions segment rose 1% to EUR2.8
billion as volumes were above the prior-year quarter in all regions
and higher price levels also had a positive effect, but negative
currency effects had an offsetting impact, mainly due to the
Brazilian real, the spokesman said.
Sales in the Nutrition & Care segment were down 3% on year,
mostly due to the U.S. dollar.
The company declined to give a figure for its first-quarter
assumption on the Brazilian real, which has lost more than 2%
against the euro since the start of the year, according to
FactSet.
Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94
(END) Dow Jones Newswires
April 29, 2021 11:26 ET (15:26 GMT)
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