BASF announces fourth quarter and full year 2012 results. 

Full year 2012:

BASF announces fourth quarter and full year 2012 results.Full year 2012:-Sales €78.7 billion (plus 7%)-EBIT before special items €8.9 billion #

-Sales €78.7 billion (plus 7%)

-EBIT before special items €8.9 billion (plus 5%)

-Record year in Agricultural Solutions and Oil & Gas; earnings in the chemicals business below prior year

 

4th quarter 2012:

-Sales €19.6 billion (plus 9%)

-EBIT before special items €1.8 billion (plus 18%)

-Dividend proposal €2.60 (2011: €2.50)

-Outlook 2013: Increase in sales and earnings targeted

 

BASF maintained its good performance in 2012. The company exceeded 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: “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 €19.6 billion, 9% higher than in the same quarter of the previous year. This increase was mainly due to higher volumes in almost all segments as well as price and currency effects. At €1.8 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 €78.7 billion, up 7% compared with 2011. EBIT before special items improved by 5% to €8.9 billion and EBIT by almost 5% to around €9 billion. Net income fell by €1.3 billion to €4.9 billion, due in part 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 €2.60 per share. This is an increase of €0.10 compared with the previous year. Based on the 2012 year-end share price of €71.15, the dividend yield would be 3.65%.

 

 “At €6.7 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.