Earnings at Braskem up 7% in Q2 of 2012

15 Aug '12

3 min read

In an attempt to stimulate their economies, central banks in the eurozone and China cut their interest rates. The Chinese government also promised to accelerate its planned investments in infrastructure and launched a stimulus package that could reach US$315 billion. The expectation is to raise China’s GDP growth in the second half of the year to a level between 6% and 8%.

In Brazil, the federal government’s measures to stimulate renewed economic growth, which included incentives for durable-goods consumption and a series of cuts in the basic interest rate, did not produce measurable effects on domestic growth in the first half of the year. The consensus forecast for GDP growth in 2012 fell to 2% per year, with expectations of a recovery starting in the third quarter.

In this scenario, Brazilian demand for thermoplastic resins was 1,127 kton, down 9% and 5% from 1Q12 and 2Q11, respectively. Braskem’s sales were 796 kton, or 6% lower than in first quarter of 2012, following the contraction in the domestic economy, partially offset by the 3 p.p. expansion in its domestic market share, which led to a market share of 71% in the quarter.

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