BASF reports strong 2012 revenues

BASF has reported that its 2012 revenues topped the 2011 record levels in sales and income from operations (EBIT) and once again earned a substantial premium on the cost of capital.

Dr. Kurt Bock, Chairman of the Board of Executive Directors of BASF SE, said during the annual conference, “The Oil & Gas and Agricultural Solutions segments achieved new records, while development in our chemicals business was weaker than in 2011.”

Sales in the fourth quarter of 2012 were EUR19.6 billion, 9% higher than in the same quarter of the previous year. Higher volumes in almost all segments as well as price and currency effects boost its revenues. At EUR1.8 billion, EBIT before special items was 18% above the level of the previous fourth quarter, mainly due to significantly higher volumes in Oil & Gas as well as improved earnings in Polyurethanes and Construction Chemicals.

For the full year, BASF increased sales to EUR78.7 billion, up 7% compared with 2011. EBIT before special items improved by 5% to EUR8.9 billion and EBIT by almost 5% to around EUR9 billion.

Net income fell by EUR1.3 billion to EUR4.9 billion, partly due to the higher earnings contribution from Oil & Gas and thus the significantly higher taxes. Furthermore, gains from the sale of BASF’s shares in K+S Aktiengesellschaft in 2011 were predominantly tax-free.

At the Annual Shareholders’ Meeting, the Board of Executive Directors and the Supervisory Board will propose a higher dividend of EUR2.60 per share. This is an increase of EUR0.10 compared with the previous year. Based on the 2012 year-end share price of EUR71.15, the dividend yield would be 3.65%.

“ At EUR6.7 billion, cash flow from operating activities once again reached a high level,” said Dr. Hans-Ulrich Engel, Chief Financial Officer of BASF. The equity ratio of 40.1% remained at a high level.

Meanwhile, BASF’s outlook for 2013 is based on specific economic conditions, including (previous year figures in parentheses), World economic growth at +2.4% (+2.2%); Growth in global chemical production at +3.6% (+2.6%); Average euro/dollar exchange rate of US$1.30/EUR (US$1.28/EUR); Average oil price of US$110/barrel (US$112/barrel).

“We aim to grow again in 2013 and exceed the 2012 levels in sales and EBIT before special items,” said Bock. The company strives to increase sales and earnings in all operating segments. The expected increase in demand, together with measures to improve operational excellence and raise efficiency, will contribute to this. BASF expects to earn a high premium on its cost of capital once again in 2013.

Bock said: “ Innovations are the basis for future profitable growth and thus lie at the core of our competitiveness.” Therefore, BASF will once again increase its research and development spending in 2013, after expenditures of EUR1.7 billion in the past year – around 9% more than in 2011.


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