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BASF Chemicals achieves double-digit sales growth in 2007
21 Feb '08
4 min read
The company sees possible risks posed by:
• continuing uncertainty due to the global credit crisis; unfavorable developments in customer industries, in particular in the construction and automotive industries;
• an increasing imbalance in exchange rates;
• economic risks due to the continuing high prices of raw materials, in particular oil; and
• an aggravation of geopolitical tensions.
BASF will therefore continue to rigorously implement its measures to optimize its portfolio, increase efficiency and reduce costs. In 2008, it remains the declared goal to improve the productivity of the BASF Group in order to ensure the competitiveness of the company in the long term.
"Assuming that there are no changes to our portfolio, we aim to increase sales and improve income before special items slightly in 2008. We aim to grow faster than the chemical market each year, and we are convinced that BASF will earn at least its cost of capital in any given year," said Hambrecht.
Chemicals segment: Double-digit sales and earnings growth: With sales totaling more than EUR 14 billion, the Chemicals segment achieved double-digit sales growth in 2007. This was due primarily to the new Catalysts division, which contributed a first full year of sales for the first time. EBIT before special items increased by more than 18 percent to EUR 2 billion.
Higher volumes and price increases improved sales and EBIT before special items in the Plastics segment. Sales rose by approximately 6 percent to EUR 13.5 billion, while earnings increased by 9 percent to EUR 1.3 billion.
In the Performance Products segment, sales climbed by more than 15 percent to EUR 11.7 billion. This was due in particular to the acquired businesses. The rise in earnings in the Construction Chemicals and Performance Chemicals divisions more than compensated for the decline in the Coatings and Functional Polymers divisions.
In the Agricultural Products & Nutrition segment, the Agricultural Products division posted higher sales and the Fine Chemicals division almost matched the previous year's sales level despite divestitures. Higher sales prices in the Agricultural Products division and successful restructuring measures in the Fine Chemicals division resulted in significantly higher earnings in both divisions.
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• continuing uncertainty due to the global credit crisis; unfavorable developments in customer industries, in particular in the construction and automotive industries;
• an increasing imbalance in exchange rates;
• economic risks due to the continuing high prices of raw materials, in particular oil; and
• an aggravation of geopolitical tensions.
BASF will therefore continue to rigorously implement its measures to optimize its portfolio, increase efficiency and reduce costs. In 2008, it remains the declared goal to improve the productivity of the BASF Group in order to ensure the competitiveness of the company in the long term.
"Assuming that there are no changes to our portfolio, we aim to increase sales and improve income before special items slightly in 2008. We aim to grow faster than the chemical market each year, and we are convinced that BASF will earn at least its cost of capital in any given year," said Hambrecht.
Chemicals segment: Double-digit sales and earnings growth: With sales totaling more than EUR 14 billion, the Chemicals segment achieved double-digit sales growth in 2007. This was due primarily to the new Catalysts division, which contributed a first full year of sales for the first time. EBIT before special items increased by more than 18 percent to EUR 2 billion.
Higher volumes and price increases improved sales and EBIT before special items in the Plastics segment. Sales rose by approximately 6 percent to EUR 13.5 billion, while earnings increased by 9 percent to EUR 1.3 billion.
In the Performance Products segment, sales climbed by more than 15 percent to EUR 11.7 billion. This was due in particular to the acquired businesses. The rise in earnings in the Construction Chemicals and Performance Chemicals divisions more than compensated for the decline in the Coatings and Functional Polymers divisions.
In the Agricultural Products & Nutrition segment, the Agricultural Products division posted higher sales and the Fine Chemicals division almost matched the previous year's sales level despite divestitures. Higher sales prices in the Agricultural Products division and successful restructuring measures in the Fine Chemicals division resulted in significantly higher earnings in both divisions.
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BASF AG
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