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BASF delivers exceptional results in difficult times
31 Oct '08
5 min read
In the Chemicals segment, BASF increased sales significantly by 19 percent, above all due to higher prices and slightly higher volumes. Sales increased in all divisions. EBIT before special items declined, primarily as a result of lower margins for cracker products as well as plant shutdowns due to the hurricanes on the U.S. Gulf Coast.
Sales in the Plastics segment increased by 4 percent. Due to the slowdown in the automotive and construction industries, higher raw material costs could not be passed on sufficiently to the market. In addition, earnings were negatively affected by plant shutdowns due to the hurricanes on the U.S. Gulf Coast.
The Performance Products segment posted a 5 percent increase in sales. Prices were raised substantially, in particular in the Care Chemicals division. EBIT before special items rose significantly thanks to the strong performance of Care Chemicals and reduced fixed costs in all divisions.
The Functional Solutions segment increased sales slightly by 1 percent despite the substantially reduced demand from the automotive and construction industries. Earnings declined in the Construction Chemicals and Coatings divisions because higher raw material costs could not be passed on fully to the market. The increase in earnings in the Catalysts division was not sufficient to compensate for this.
BASF achieved sales growth of 11 percent in the Agricultural Solutions segment thanks to higher volumes and prices. Adjusted for currency effects, sales grew by 17 percent. The relatively high price level for agricultural products resulted in strong demand for innovative crop protection agents. Although the third quarter generally tends to be weak due to the seasonal nature of the business, the company increased earnings significantly and reached a record value.
Sales in the Oil & Gas segment increased by 46 percent, in particular due to the higher oil price and a rise in volumes in the Natural Gas Trading business sector. Earnings also rose considerably as a result of the oil price. Earnings in Natural Gas Trading were negative as a result of the time lag in adjusting sales prices to purchase prices.
About BASF:
BASF is the world's leading chemical company: The Chemical Company. Its portfolio ranges from oil and gas to chemicals, plastics, performance products, agricultural products and fine chemicals. As a reliable partner BASF helps its customers in virtually all industries to be more successful.
With its high-value products and intelligent solutions, BASF plays an important role in finding answers to global challenges such as climate protection, energy efficiency, nutrition and mobility. BASF has more than 95,000 employees and posted sales of almost €58 billion in 2007.
Sales in the Plastics segment increased by 4 percent. Due to the slowdown in the automotive and construction industries, higher raw material costs could not be passed on sufficiently to the market. In addition, earnings were negatively affected by plant shutdowns due to the hurricanes on the U.S. Gulf Coast.
The Performance Products segment posted a 5 percent increase in sales. Prices were raised substantially, in particular in the Care Chemicals division. EBIT before special items rose significantly thanks to the strong performance of Care Chemicals and reduced fixed costs in all divisions.
The Functional Solutions segment increased sales slightly by 1 percent despite the substantially reduced demand from the automotive and construction industries. Earnings declined in the Construction Chemicals and Coatings divisions because higher raw material costs could not be passed on fully to the market. The increase in earnings in the Catalysts division was not sufficient to compensate for this.
BASF achieved sales growth of 11 percent in the Agricultural Solutions segment thanks to higher volumes and prices. Adjusted for currency effects, sales grew by 17 percent. The relatively high price level for agricultural products resulted in strong demand for innovative crop protection agents. Although the third quarter generally tends to be weak due to the seasonal nature of the business, the company increased earnings significantly and reached a record value.
Sales in the Oil & Gas segment increased by 46 percent, in particular due to the higher oil price and a rise in volumes in the Natural Gas Trading business sector. Earnings also rose considerably as a result of the oil price. Earnings in Natural Gas Trading were negative as a result of the time lag in adjusting sales prices to purchase prices.
About BASF:
BASF is the world's leading chemical company: The Chemical Company. Its portfolio ranges from oil and gas to chemicals, plastics, performance products, agricultural products and fine chemicals. As a reliable partner BASF helps its customers in virtually all industries to be more successful.
With its high-value products and intelligent solutions, BASF plays an important role in finding answers to global challenges such as climate protection, energy efficiency, nutrition and mobility. BASF has more than 95,000 employees and posted sales of almost €58 billion in 2007.
BASF
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