BASF report €1.8 billion net income

10/03/05 The world’s leading chemicals group by sales BASF has reported net income of €1.8 billion in 2004, as sales climbed by 13 percent to €37.5 billion. Income from operations (EBIT) before special items rose significantly by 64 percent to €4.9 billion. Sales and earnings increased in all segments. The group reported that earnings were positive in all divisions. The performance of the Chemicals segment was particularly strong, with sales rising by 22 percent and EBIT before special items by 167 percent.

In the months October through December, the company reported that demand for BASF’s products remained strong. Compared with the strong fourth quarter of 2003, the company again increased sales in its Chemicals, Plastics, Performance Products and Oil & Gas segments, in some cases significantly. In the Agricultural Products & Nutrition segment, sales were almost at the previous year’s level. Overall, fourth-quarter sales rose slightly to €9.8 billion.

Chairman of the Board at BASF, Dr. Jürgen Hambrecht said that, “we expect to achieve slightly higher sales in 2005 and follow on from the high level of EBIT before special items posted in 2004. We therefore again expect to earn a premium on our cost of capital. We will continue to implement measures to optimize our portfolio, increase efficiency and reduce costs.”