Home / Knowledge / News / Textiles / BASF presents a long-term financial goal
BASF presents a long-term financial goal
08
Jul '08
At an analyst conference held in London, BASF has confirmed its outlook for 2008 despite signs of weakening growth in the chemical industry. For the current year, the company has revised its expectations for growth in global chemical production from 2.8 percent to 2.4 percent. For 2008, BASF is now assuming an average oil price (Brent) of $120 per barrel and an average exchange rate of $1.55 per euro.

“I am confident that BASF will achieve its goals for 2008 despite the rise in oil prices and the associated significant increase in raw material prices,” said Dr. Jürgen Hambrecht, chairman of BASF. “Assuming that there are no changes to BASF's portfolio, we aim to increase sales and to improve EBIT before special items slightly in 2008.”

At the same time, BASF presented a long-term financial goal: For the next five years, the BASF Group aims to achieve an EBITDA margin of 18 percent. The EBITDA margin is a measure of the profitability of a company. It is calculated as income from operations before depreciation and amortization as a percentage of sales.

This goal is based on the following long-term assumptions: an unchanged portfolio, an oil price (Brent) of $100 per barrel and an exchange rate of $1.40 to $1.50 per euro. In the same period, BASF aims to post average volume growth two percentage points above the chemical market.

Against the background of an increasingly difficult global economic environment, Hambrecht pointed out the advantages of having a portfolio that has been focused on profitable growth markets over the past years. For example, specialty products, which are faster growing than commodities, now account for 63 percent of sales (excluding Oil & Gas and precious metals trading) compared with 54 percent in 2003.

As a result, BASF is now in a better position to deal with economic fluctuations than in the past. BASF's acquisitions of Engelhard, Degussa Construction Chemicals and Johnson Polymer in 2006 have contributed substantially to this development.

New products and the use of innovative processes are expected to contribute significantly to growth in the coming years. In terms of patents, BASF is a global leader with a portfolio of almost 130,000 patents and patent applications.

BASF SE


Must ReadView All

VF Corporation to split into two independent companies

Apparel/Garments | On 14th Aug 2018

VF Corporation to split into two independent companies

VF Corporation, a global leader in branded lifestyle apparel,...

Courtesy: Good On You

Apparel/Garments | On 14th Aug 2018

Good On You in Oz adds 500 European brands to rating app

Australia-based Good On You’s brand-rating app has recently added 500 ...

Courtesy: USDA/FAS

Textiles | On 14th Aug 2018

US cotton exports in 2017-18 highest in over a decade

Cotton exports from the US in 2017-18 reached their highest level...

Interviews View All

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Veronique Lee
Modavanti

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Top executives
Textile industry

The foremost issue is bridging the skill gap

Paolo Crespi

For.Tex is an Italy-based leading producer of dyes and thickeners, and is...

Manoj Sorathiya

Surat-based Sunrise Imports & Exports Co is a manufacturer and...

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Dave Rousse
INDA

INDA, the Association of the Nonwoven Fabrics Industry, serves hundreds of ...

Pierre Wiertz
EDANA

EDANA, the international association serving the nonwovens and related...

Pierre Wiertz
EDANA

Pierre Wiertz talks about the vast world of sustainable nonwovens and...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


August 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search