Solid First Quarter of 2013 for BASF
Sales EUR 19.7 Billion (Plus 5 Percent); EBIT Before Special Items
EUR 2.2 Billion (Plus 10 Percent); High Earnings From Agricultural
Solutions Segment; Dividend Proposal EUR 2.60 (Previous Year EUR
2.50); Outlook for 2013 Confirmed: Increase in Sales and Earnings
LUDWIGSHAFEN and MANNHEIM, GERMANY -- (Marketwired) -- 04/26/13 --
BASF increased its sales and income from operations (EBIT) before
special items in the first quarter of 2013. At EUR 19.7 billion,
sales exceeded the level of the previous first quarter by 5 percent.
Sales volumes grew particularly as a result of intensified demand for
crop protection products and increased volumes in the Oil & Gas
segment. EBIT before special items rose by 10 percent to EUR 2.2
"We have had a solid start to 2013. In particular, our business with
crop protection products continued to be very successful," said Dr.
Kurt Bock, Chairman of the Board of Executive Directors of BASF SE,
at the Annual Shareholders' Meeting in the Congress Center
Rosengarten in Mannheim. The increase in EBIT before special items in
the first quarter was also due to considerable earnings improvement
in the Chemicals segment thanks to higher margins.
Compared with the previous first quarter, EBIT declined by EUR 429
million to around EUR 2.2 billion. Special income from the
divestiture of the fertilizer business of EUR 645 million in the
first quarter of the previous year was primarily responsible for this
reduction. Income from operations before depreciation and
amortization (EBITDA) thus decreased by EUR 450 million to around EUR
2.9 billion. The financial result amounted to minus EUR 126 million
compared with minus EUR 158 million in the first quarter of 2012.
Income before taxes and minority interests decreased by EUR 397
million to EUR 2.0 billion compared with the previous first quarter.
Net income declined by EUR 257 million to EUR 1.4 billion. Earnings
per share were EUR 1.57 in the first quarter of 2013, compared with
EUR 1.85 in the same period of 2012. Adjusted for special items and
amortization of intangible assets, earnings per share were EUR 1.67,
an increase of EUR 0.13 compared with the first quarter of the
Cash provided by operating activities rose to over EUR 2.0 billion in
the first quarter of 2013, up by EUR 502 million compared with the
first quarter of the previous year. Net debt was reduced to about EUR
10.9 billion as of the end of the first quarter of 2013, compared
with about EUR 11.2 billion as of December 31, 2012.
The Board of Executive Directors and the Supervisory Board proposed
to the Annual Shareholders' Meeting that the dividend for the 2012
business year be increased by EUR 0.10 to EUR 2.60 per share. This
represents a payout of almost EUR 2.4 billion to shareholders. Based
on the year-end share price for 2012, BASF shares thus offer a high
dividend yield of 3.7 percent. BASF is part of the DivDAX share
index, which contains the 15 companies with the highest dividend
yield in the DAX 30. "We stand by our ambitious dividend policy and
aim to increase our dividend each year, or at least maintain it at
the previous year's level," said Bock.
In North America, sales fell by 2 percent both in U.S. dollars and in
euro terms. Sales declined in the chemicals business (which comprises
the Chemicals, Performance Products and Functional Materials &
Solutions segments) mainly as a result of lower volumes. Plant
shutdowns in the Petrochemicals division were largely responsible for
this. However, volumes and sales significantly improved in the
Agricultural Solutions segment.
"At EUR 454 million, earnings in North America surpassed the level of
the previous first quarter by EUR 88 million. Excellent performance
by Agricultural Solutions coupled with effective cost-control
measures in our businesses and functions led to this significant
increase in earnings," said Hans Engel, CEO of BASF Corporation and
Chief Financial Officer of BASF SE.
Outlook for 2013 confirmed
The company's expectations for the global economic environment in
2013 remain unchanged:
-- Growth of gross domestic product: 2.4 percent
-- Growth in industrial production: 3.4 percent
-- Growth in chemical production: 3.6 percent
-- An average euro/dollar exchange rate of $1.30 per euro
-- An average oil price for the year of $110 per barrel
Bock: "We expect global economic growth to pick up only slightly in
2013. The chemical industry will increase production again compared
to 2012 because the emerging markets are growing. However, we do not
expect a straight-line trend. The market environment remains
volatile." Economic growth would be impaired by an intensification of
the debt crises in the eurozone and the United States as well as by
lower demand in Asia.
"We stand by our outlook for 2013: We continue to aim to exceed the
2012 levels in sales and EBIT before special items," said Bock.
Business development in the segments in the first quarter
The Chemicals segment posted a decline in sales in the first quarter.
This was mostly due to lower sales volumes, which were mainly
attributable to plant shutdowns in the Petrochemicals division. Sales
volumes in the Monomers and Intermediates divisions increased thanks
to higher demand. As a result of better margins, earnings
considerably surpassed the level of the first quarter of 2012.
Sales declined in the Performance Products segment, largely because
of lower sales prices and negative currency effects. While sales in
the Nutrition & Health division saw a portfolio-driven increase, they
fell in the Dispersions & Pigments and Paper Chemicals divisions,
especially as a result of lower sales volumes. Earnings did not match
the level of the previous first quarter due mainly to lower margins
resulting from higher raw material costs.
Sales in the Functional Materials & Solutions segment matched the
level of the first quarter of 2012. Higher sales volumes compensated
for negative currency effects. The Performance Materials division in
particular posted an increase in volumes. By contrast, sales volumes
declined in the Construction Chemicals division on account of weather
conditions. Earnings for the segment decreased due to the lower
contribution from the Catalysts division.
Sales rose significantly in the Agricultural Solutions segment. The
very good start to the season in Europe and North America largely
contributed to this. In addition to sharply increased sales volumes,
sales growth was also boosted by higher prices as well as the
acquisition of Becker Underwood. Earnings significantly increased
thanks to higher volumes.
Despite lower crude oil prices, sales grew considerably in the Oil &
Gas segment. This was mainly attributable to higher production and
trading volumes. Pressure continued to rise on trading margins in the
Natural Gas Trading business sector. Earnings for the segment
therefore remained just below the level of the first quarter of 2012.
Sales in Other grew compared with the same quarter of the previous
year. EBIT before special items improved, as well. This was
essentially due to valuation effects for the long-term incentive
program; provisions could be reversed in the first quarter of 2013 on
account of BASF share price development.
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 16,600 employees in North America, and had sales of $18.5
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 had sales of EUR 72.1 billion in 2012 and
more than 110,000 employees as of the end of the year. Further
information on BASF is available on the Internet at www.basf.com.
You can obtain further information from the internet at the following
Interim Report (from 7:00 a.m. CEST)
Global Press Release (from 7:00 a.m. CEST)
For the North American Press Release (English only), visit
Live Transmission - Telephone conference for analysts and investors
as well as information about BASF shares
(from 8:30 a.m. CEST)
Live Transmission - Speech Dr. Kurt Bock
(from 10:00 a.m. CEST)
Speech Dr. Kurt Bock - Print version
(from 10:30 a.m. CEST)
Current press photos from the Annual Shareholders' Meeting
1:00 p.m. CEST)
General corporate press photos
Current TV footage
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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