* Q2 adj EBIT up 94 pct at 2.2 bln eur
* Confirms FY outlook for adj EBIT to see marked gains
* Still aims to increase dividend for 2010
(Adds details, background)
FRANKFURT, July 29 (Reuters) – German chemicals maker BASF (BASF.DE) surpassed analysts’ earnings expectations for the sixth straight quarter, bolstered by a rebound in the car and electronics industries.
The strong results add to evidence global chemical makers are out of the woods.
The world’s largest chemicals supplier by sales said on Thursday that second-quarter earnings before interest and tax (EBIT), adjusted for one-off items, almost doubled to 2.2 billion euros ($2.9 billion).
That surpassed the 2.03 billion euros expected on average in a Reuters poll of analysts as BASF continued to recover from an economic crisis. [ID:nLDE63P246]
BASF reiterated that adjusted operating profit was set to improve significantly this year compared with crisis-fraught 2009, when its operating margin hit an eight-year low.
It also confirmed its goal to increase the annual dividend.
The dominance of massive overhead costs in the industry means rising sales — 30 percent in the case of BASF’s second quarter — translate into a much stronger profit rebound as companies use capacity left idle during the slump.
Signs are rife that a rebounding global economy continues to fuel a recovery in the chemical sector. DuPont (DD.N), the third-largest U.S. chemical maker, on Tuesday forecast 2010 earnings well above expectations. [ID:nN26201739]
The Netherlands’ AkzoNobel (AKZO.AS), the world’s largest paint maker, hit its 2011 margin target early and reporting better-than-expected quarterly results last week. [ID:nLDE66M02Z] (Reporting by Ludwig Burger)