BASF records strong start 2011, Kurt Bock takes over as Chairman

BASF records strong start to 2011, Kurt Bock takes over as Chairman

2:36 PM, 17th June 2011
BASF records strong start to 2011, Kurt Bock takes over as Chairman
Dr Jürgen Hambrecht, Chairman of BASF’s Board of Executive Directors.

  • BASF remains on growth track
  • Sales (up 25 per cent) and EBIT before special items (up 40 per cent) far above previous year’s levels
  • Cognis integration progressing rapidly

LUDWIGSHAFEN, GERMANY: BASF has had a powerful start to 2011. Capacity utilization rates in the company’s plants were good; in particular, demand in the chemicals business increased compared with the same quarter of the previous year. Sales grew by 25 per cent to € 19.4 billion. The Cognis businesses acquired in December 2010 made a significant contribution to this substantial sales growth. The earthquake off the coast of Japan and its aftermath as well as the tense political situation in North Africa have not yet had a significant impact on BASF’s business.

“Despite strong increases in raw materials costs, income from operations before special items rose by 40 per cent to € 2.7 billion,” said Dr Jürgen Hambrecht, Chairman of BASF’s Board of Executive Directors. Hambrecht and Dr John Feldmann are retiring from the BASF’s Board of Executive Directors at the end of the Annual Meeting. At that time, the new Board led by Dr Kurt Bock will take office.

Compared with the first quarter of 2010, sales volumes rose in nearly all segments. Income from operations (EBIT) increased by 39 per cent to € 2.6 billion compared with the first quarter of the previous year. EBITDA rose by € 738 million to € 3.4 billion. The EBITDA margin rose to 17.4 per cent (first quarter of 2010: 17 per cent).

The financial result was € 830 million, an improvement of € 910 million compared with the same period of the previous year. Net income increased by € 1.4 billion to € 2.4 billion. Earnings per share were € 2.62 in the first quarter of 2011 compared with € 1.12 in the same period of 2010.

In the forecast, BASF assumes that it will not be able to resume its crude oil production in Libya in 2011. The company expects a higher annual average oil price. Therefore, the previous forecast of $ 90 per barrel has been raised to $ 100 per barrel. Despite the reduction in oil production, the BASF expects significant sales growth in 2011. As a result of the suspension of oil production in Libya, the company now anticipates that the non-compensable oil production taxes will decline by around € 700 million.

The group has reported increase in sales and earnings in all segments. In the chemicals segment, sales in all divisions increased substantially as a result of significantly higher sales prices as well as greater volumes. The plastics segment experienced strong demand in all business areas; sales improved substantially compared with the first quarter of 2010 in particular as a result of higher sales volumes.

Sales in the performance products segment were also far above the level of the same quarter of 2010. Sales growth was additionally boosted by increased volumes as well as higher prices resulting from the rise in raw materials costs. 

In the functional solutions segment, there was an overall strong rise in sales volumes and sales. Demand from the automotive industry increased compared with the same quarter of the previous year.

In the agricultural solutions segment, sales grew in nearly all regions. Despite intense competition, the high sales level of the first quarter of 2010 could be slightly exceeded. 

BASF saw double-digit earnings growth in all regions. Sales in Europe were 24 per cent higher than in the same period of the previous year. In North America, sales grew by 21 per cent. Sales in the Asia Pacific region rose by 28 per cent. In South America, Africa, Middle East, sales were up year on-year by 20 per cent.

(C) WOC News




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