$BAS (-1,79%) presented its quarterly figures and delivered a mixed but slightly better than expected picture overall.
- Turnover (expected): EUR 15.76 billion
- Turnover (reported): EUR 16.02 billion
- EPS (expected): EUR 1.06
- EPS (reported): EUR 1.32
The reported figures were therefore slightly above expectations, while profit was also more stable than feared. Operationally, however, the picture remains challenging. Sales are down slightly year-on-year, mainly due to falling prices and negative currency effects, while sales volumes were even stable to slightly higher in some cases. This clearly shows that the problem currently lies less on the demand side than primarily in price pressure and the weak industrial environment. At the same time $BAS (-1,79%) At the same time, we were able to stabilize profits thanks to income from investments and internal efficiency measures, among other things, which will provide relief at least in the short term. Overall, the quarter thus confirms the company's current transition phase. The operating basis is in place, but margins remain under pressure. This is particularly evident in the development of the chemicals segments, which are heavily dependent on energy and raw material costs as well as global industrial demand.
In this context, the role of $BAS (-1,79%) as an early indicator of economic development, particularly in Germany. The chemical industry is at the beginning of many value chains, which is why rising demand is often the first sign of an economic recovery. At present, however, only cautious signs of stabilization can be seen here. The slight increase in volumes suggests that industrial demand is not collapsing any further, but there is still no sign of a clear, broad-based recovery. On the contrary, the continuing price pressure shows that the environment remains weak and that companies have not yet regained their pricing power.
For me, the decisive factor in the coming quarters will be whether $BAS (-1,79%) whether it will be possible to stabilize the ongoing price pressure and at the same time benefit from a possible recovery in industrial demand (particularly in China). Equally important for me is the extent to which the ongoing cost and restructuring programs actually have an impact on profitability. In my opinion, the development of energy prices will also continue to play a key role. Overall, the big question for me remains whether this is already the start of a cyclical recovery in the chemical sector or whether we are only seeing a short-term stabilization in a persistently difficult environment.
~ No investment advice ~
