BASF Maintains Good Business Performance in the Third Quarter

BASF Maintains Good Business Performance in the Third Quarter 
LUDWIGSHAFEN, GERMANY -- (Marketwire) -- 10/25/12 -- 


 
--  3rdquarter 2012:
    --  Sales up 8% and EBIT before special items up 5% compared with
        third quarter of 2011
    --  Successful business development continues in Agricultural
        Solutions and Oil & Gas segments
    --  Sales increase, but earnings lower in North America compared to
        third quarter 2011
--  Outlook for full year 2012 confirmed: Increase in sales and earnings
    targeted

  
After a solid first half, BASF maintained good business performance
overall in the third quarter. Sales rose by 8% to EUR 19 billion,
particularly due to higher volumes. At just under EUR 2.1 billion,
income from operations (EBIT) before special items was 5% above the
level of the third quarter of 2011. The higher contribution from the
Oil & Gas and Agricultural Solutions segments more than offset lower
earnings in the chemicals business (which comprises the Chemicals,
Plastics, Performance Products and Functional Solutions segments). 
At the presentations of the results, Dr. Kurt Bock, Chairman of the
Board of Executive Directors of BASF SE, said: "In the past quarter,
the outlook for the world economy has once again not improved and the
uncertainty on the international capital markets continues. In China,
growth in the third quarter of 2012 has slowed once again compared
with the same quarter of the previous year. We see stabilization at
the current level in China, but no visible upturn." 
BASF confirms outlook for full year 2012
 The company has adjusted
some of its expectations for the global economy (previous forecast in
parentheses): 


 
--  Growth of gross domestic product: 2.2% (2.3%)
--  Growth in industrial production: 2.8% (3.4%)
--  Growth in chemical production: 2.9% (3.5%)
--  An average euro/dollar exchange rate of $1.30 per euro
     ($1.30 per
    euro)
--  An average oil price of $110/barrel in 2012 ($110/barrel)

  
BASF does not anticipate an upturn in the global economy or in demand
in its chemicals business for the fourth quarter of 2012. "However,
we still aim to exceed the 2011 record levels in sales and EBIT
before special items," said Bock. The forecast is supported by the
resumption of the crude oil production in Libya and by the company's
successful business with crop protection products. Earnings from the
chemicals business in 2012 will not match the level of the previous
year. 
"In this challenging environment, we are concentrating on our
strengths and expanding our business, but we are also keeping an eye
on the costs and are continuing to optimize our business processes,"
said Bock. For example, at the beginning of this week, BASF Group
company Wintershall signed an agreement with Statoil ASA to
substantially expand its production of oil and gas on the Norwegian
continental shelf. In addition, through the planned acquisition of
US-based Becker Underwood, Inc., BASF aims to become one of the
leading global providers of technologies for biological seed
treatment and biological crop protection. BASF's strategic excellence
program STEP, which was already announced in November 2011, is making
good progress. STEP comprises more than 100 projects that are
expected to successively lower fixed costs and raise profit margins.
From completion of the program in 2015, the company expects an annual
earnings contribution of around EUR 1 billion.  
BASF in North America posts mixed results
 In North America, sales
decreased by 9% in U.S. dollars and rose by 3% in euro terms compared
to the prior year's quarter. "This development was supported by
positive currency effects and demand-driven higher sales volumes in
the Plastics segment," said Hans Engel, CEO of BASF Corporation, the
company's North American subsidiary. "However, our earnings at EUR
229 million were EUR 72 million lower than in the third quarter of
2011, particularly owing to unscheduled plant shutdowns in the
Petrochemicals division." 
BASF - The Chemical Company
 BASF Corporation, headquartered in
Florham Park, New Jersey, is the North American affiliate of BASF SE,
Ludwigshafen, Germany. BASF has more than 16,000 employees in North
America, and had sales of $20 billion in 2011. For more information
about BASF's North American operations, visit www.basf.us. 
BASF is the world's leading chemical company: The Chemical Company.
Its portfolio ranges from chemicals, plastics, performance products
and crop protection products to oil and gas. We combine economic
success, social responsibility and environmental protection. Through
science and innovation we enable our customers in almost all
industries to meet the current and future needs of society. Our
products and system solutions contribute to conserving resources,
ensuring healthy food and nutrition and helping to improve the
quality of life. We have summed up this contribution in our corporate
purpose: We create chemistry for a sustainable future. BASF posted
sales of about EUR 73.5 billion in 2011 and had more than 111,000
employees as of the end of the year. Further information on BASF is
available on the Internet at www.basf.com.  
Betsy Arnone
Corporate Media Relations
Phone: 973-245-7865
E-mail: betsy.arnone@basf.com 
John Schimdt
Corporate Media Relations
Phone: 973-245-6405
E-mail: john.schmidt@basf.com 
 
 
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