BASF Increases Sales and Income From Operations in 2012
LUDWIGSHAFEN, GERMANY -- (Marketwire) -- 02/26/13 --
-- Full year 2012:
-- Sales EUR 78.7 billion (plus 7%)
-- EBIT before special items EUR 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 EUR 19.6 billion (plus 9%)
-- EBIT before special items EUR 1.8 billion (plus 18%)
-- Dividend proposal EUR 2.60 (2011: EUR 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. Kurt
Bock, Chairman of the Board of Executive Directors of BASF SE, said
at the Annual Press Conference: "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 EUR 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 EUR 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 EUR 78.7 billion, up 7%
compared with 2011. EBIT before special items improved by 5% to EUR
8.9 billion and EBIT by almost 5% to around EUR 9 billion. Net income
fell by EUR 1.3 billion to EUR 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 EUR 2.60
per share. This is an increase of EUR 0.10 compared with the previous
year. Based on the 2012 year-end share price of EUR 71.15, the
dividend yield would be 3.65%.
"At EUR 6.7 billion, cash flow from operating activities once again
reached a high level," said Hans Engel, CEO of BASF Corporation and
Chief Financial Officer of BASF SE. The equity ratio of 40.1%
remained at a high level.
BASF in North America
At EUR 14.6 billion (approx. $18.7 billion), BASF sales in North
America in 2012 were 1% below the level of 2011. Sales rose
considerably in the Plastics and Agricultural Solutions segments, but
declined in the Chemicals segment. North America accounted for 18% of
BASF Group sales in 2012. Income from operations (EBIT) in North
America decreased by 27% to EUR 964 million, mostly as a result of
the lower contribution from the Chemicals segment.
Outlook for 2013
BASF's outlook for 2013 is based on the following economic conditions
(previous year figures in parentheses):
-- World economic growth: +2.4% (+2.2%)
-- Growth in global chemical production: +3.6% (+2.6%)
-- An average euro/dollar exchange rate of $1.30 per euro ($1.28 per
-- An average oil price of $110/barrel ($112/barrel)
"We aim to grow again in 2013 and exceed the 2012 levels in sales and
EBIT before special items," said Bock. The company strives to
increase sales and earnings in all operating segments. The expected
increase in demand, together with measures to improve operational
excellence and raise efficiency, will contribute to this. BASF aims
to earn a high premium on its cost of capital once again in 2013.
Bock said, "Innovations are the basis for future profitable growth
and thus lie at the core of our competitiveness." Therefore, BASF
will once again increase its research and development spending in
2013, after expenditures of EUR 1.7 billion in the past year --
around 9% more than in 2011.
Sales increase in almost all segments in the fourth quarter
In Chemicals, sales in the fourth quarter 2012 increased, equally
driven by price and portfolio effects. Volume growth and currency
tailwinds also contributed to topline growth. EBIT before special
items declined mainly due to lower margins and plant shutdowns. For
the full year 2012, sales increased by 7% to EUR 13.8 billion. EBIT
before special items decreased by 30% to EUR 1.7 billion.
Sales in Plastics increased due to higher volumes and prices as well
as positive currency effects. There was continuing strong demand from
the automotive industry, particularly in North America and Asia. EBIT
before special items rose substantially due to a significant
improvement in earnings in Polyurethanes. In 2012, sales in the
Plastics segment increased 4% to EUR 11.4 billion. EBIT before
special items declined by 27% to EUR 873 million.
Sales in Performance Products came in above the previous fourth
quarter, mainly driven by higher volumes. Price declines were offset
by positive currency effects. EBIT before special items in the
segment decreased due to lower margins. Sales for the full year 2012
of EUR 15.9 billion were around 1% higher than in the previous year.
EBIT before special items fell 17% to EUR 1.4 billion.
Sales in Functional Solutions decreased slightly compared with the
fourth quarter of 2011. Volumes were down, particularly due to a
lower contribution from precious metals trading. A small decrease in
sales prices was compensated for by currency tailwinds. Healthy
demand in Catalysts and Coatings came from the automotive industry.
Strict fixed cost management led to a substantial increase in EBIT
before special items. Sales in 2012 were EUR 11.5 billion, 1% higher
than in 2011. At EUR 561 million, EBIT before special items was
slightly above the previous year.
Sales in Agricultural Solutions were up in the fourth quarter of
2012. Growth was driven by higher volumes, the Becker Underwood
acquisition, and favorable currency effects. Sales in South America
increased significantly despite dry weather conditions in Brazil.
Prices were just below the high level of the prior-year quarter. EBIT
before special items was lower than in the fourth quarter of 2011 due
to higher R&D expenditures and investments in growth markets. In
addition, royalty income in North America reported in the fourth
quarter in 2011 was already reported in the third quarter in 2012.
Agricultural Solutions had another record year in 2012. Sales rose by
12% to EUR 4.7 billion. EBIT before special items grew by 28% to more
than EUR 1 billion. The EBITDA margin target of 25% was achieved.
Sales in Oil & Gas in the fourth quarter grew strongly mainly due to
significantly increased oil production in Libya and higher volumes
from Natural Gas Trading. The start-up of additional wells in the
Achimgaz joint venture also contributed to sales. EBIT before special
items grew substantially. Special items of EUR 120 million were
related to impairment charges on the Yme development project in
Norway. Non-compensable taxes on oil production amounted to EUR 492
million. Net income decreased by 9% and was EUR 250 million. For the
full year, sales rose by 39% to EUR 16.7 billion and EBIT before
special items almost doubled to EUR 4.1 billion. Net income also grew
to EUR 1.2 billion.
In the fourth quarter, sales in Other were around EUR 1.2 billion.
These activities include the sale of raw materials, engineering and
other services, rental income and leases. EBIT before special items
declined by EUR 91 million mainly due to lower earnings of other
businesses. In 2012, sales were EUR 4.8 billion, a decline of 24% and
EBIT before special items decreased to minus EUR 839 million. This
was primarily due to the divestiture of the styrenic plastics
activities and the fertilizer business.
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 16,900 employees in North America, and had sales of $18.7
billion in 2012. 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 with environmental protection and social responsibility.
Through science and innovation, we enable our customers in nearly
every industry to meet the current and future needs of society. Our
products and solutions contribute to conserving resources, ensuring
nutrition and improving quality of life. We have summed up this
contribution in our corporate purpose: We create chemistry for a
sustainable future. BASF posted sales of EUR 78.7 billion in 2012 and
had more than 113,000 employees as of the end of the year. Further
information on BASF is available on the Internet at www.basf.com.
On February 26, 2013, you can obtain further information from the
internet at the following addresses:
BASF Report 2012
Global Press Release
For the North American Press Release (English only), visit
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This release contains forward-looking statements. These statements
are based on current estimates and projections of BASF management and
currently available information. They are not guarantees of future
performance, involve certain risks and uncertainties that are
difficult to predict, and are based upon assumptions as to future
events that may not be accurate. Many factors could cause the actual
results, performance or achievements of BASF to be materially
different from those that may be expressed or implied by such
statements. BASF does not assume any obligation to update the
forward-looking statements contained in this release.
For more information contact:
John C. Schmidt
Tel: (973) 245-6405
Tel: +49 621 60-99123
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