Two of the world’s biggest chemical companies, BASF and Dow, posted strong results for the third quarter as the world’s economy continues to recover from the effects of the COVID-19 pandemic. But both firms, among the first chemical makers to report earnings for the period, say inflation and supply chain disruptions are starting to weigh on the industry.BASF reported a 42% increase in sales and a massive 160% increase in earnings in the third quarter from the same period a year ago, when governments around the world were imposing lockdowns to stem the spread of COVID-19. Increased sales volumes were responsible for 6% of the sales rise and increased prices another 36%.However, earnings at BASF, the world’s largest chemical company, declined 23% from the second quarter. “Our downstream businesses are still confronted with further rising raw material, energy, and freight costs,” BASF Chairman Martin Brudermüller told analysts. “Price increases in most downstream businesses could only partially offset these higher costs.”
Interesting how the increased prices account for most of the additional revenues.
What's great is that upper level executives (at least over here) are celebrating the heck out of a "record year" when its all just due to market conditions that allowed for huge price increases. Next year when budgets are adjusted, it will probably be another record year but it will be forecasted so it will be doom and gloom again if targets are missed.
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