-
Increase in sales (up 6%)
-
EBIT before special items slightly below same
quarter
of previous year (down 7%)
-
Strong contribution from Agricultural Solutions
and Oil & Gas segments
-
Outlook for 2012 confirmed: increase in sales
and
earnings targeted
Ludwigshafen/Mannheim, Germany - April 27, 2012 -
BASF had a solid start to2012.
Sales were higher than in the very good first quarter of
the previous year and rose 6% to 20.6 billion. Income from
operations (EBIT) before special items
decreased as expected and,at 2.5 billion
(down
7%),wasslightly
belowthesame quarter
oftheprevious year.
"Increased raw material costs could not be fully passed on
in all business areas, which put pressure on our margins.
Our Oil & Gas and Agricultural Solutions segments increased
their earnings significantly," said
Dr. Kurt Bock, Chairman of the Board of
Executive Directors of BASF, at the Annual Shareholders'
Meeting in the Congress Center Rosengarten in
Mannheim.
Compared with the first quarter of the previous year,
EBIT grew by 22% to 3.1 billion. Special items in
EBIT resulted primarily from gains of 645 million on
the disposal ofthefertilizer
business. EBITDA rose by 525 million to
3.9 billion.
At minus 73 million, the financial result was 903
million lower than in the same quarter of 2011. In the
previous year, the financial result included special income
of 887 million from the sale of shares in K+S
Aktiengesellschaft.
Income before taxes and minority interests decreased
by 333 million in the first quarter of 2012 to
3.0 billion. At 39.6%, the tax rate was far higher
than in the first quarter of 2011.This
increase is the result ofthe largely tax-free
gain on the sale of shares in K+S
Aktiengesellschaft in the
previous yearas well
asahigher earnings contribution
from the Oil & Gas segment in 2012.
Net income decreased by 687 million to
1.7 billion. Earnings per share were 1.88 in the
first quarter of 2012, compared with 2.62 in the same
period of 2011. Adjusted for special items and amortization
of intangible assets, earnings per share amounted to 1.57
(first quarter of 2011: 1.94).
With cash provided by operating activities at just
under 1.6 billion, BASF has been able to further
reduce its net debt by 1.5 billion to around
9.4 billion since the beginning of the year.
At the end of the first quarter of 2012, BASF shares
traded at 65.59, an increase of 21.7% compared with the
closing price at the end of 2011. The BASF stock thus
outperformed the German stock index DAX
30 and the European benchmark index DJ
EURO STOXX50 as well asthe global
industry indexes DJ Chemicals and MSCI
WorldChemicals.
The Board of Executive Directors and the Supervisory
Board proposed to the Annual Shareholders' Meeting that a
dividend of 2.50 per share be paid for the 2011 business
year.Bock said:"We are thus
standing by our ambitious dividend policy of increasing our
dividend each year or at least maintainingit
at the previous year's level."
Bock thanked Dr. Stefan Marcinowski, who is
retiringfollowing 15 successful years on the
Boardof Executive Directors of
BASF.Marcinowski joined BASF 33
years ago as a chemist in the main laboratory with further
stations in his career
asheadofthe
public relations department
andthreeyears abroad
inBrazil.Bock also wished much
success to WayneT. Smith,
who will join the Board as of the end of the Annual
Meeting.
Outlook for 2012
After a weak fourth quarter in 2011, BASF's business
recovered in the first quarter of 2012. However, higher raw
material costs could only be partly passed on. The company
expects global economic growth to continue over the course
of 2012. Uncertainty on the financial markets dampens
growth prospects. Positive stimulus for the chemical
industry will mainly come from the emerging markets. BASF's
expectations for the global economy in 2012 remain
unchanged:
-
Growth of gross domestic product: 2.7%
-
Growth in industrial production: 4.1%
-
Growth in chemical production: 4.1%
-
An average euro/dollar exchange rate of $1.30 per
euro
-
An average oil price of $110
perbarrel
Excluding the effects of acquisitions and
divestitures, BASF aims to increase sales volumes. Bock
stated: "We strive to exceed the 2011 record levels in
sales and income from operations. Our forecast will be
especially supported by the resumption of our crude oil
production in Libya as well as by growing volumes in the
chemicals business. In the first half of 2012, we are
unlikely to match the extraordinarily good levels of the
same period of the previous year." For the second half,
however, BASF expects an increase in sales and earnings
compared with the second half of 2011. The company aims to
earn a high premium on its cost of capital once again in
2012.
Sales increase in almost all segments
Sales increased in
theChemicalssegment, mainly
thanks to positive currency effects and sales to
Styrolution Group companies. Sales volumes decreased as a
result of the optimization of the supply chain for steam
cracker products, carried out in the third quarter of 2011.
On a comparable basis, volumes increased slightly. Higher
raw material costs resulted in declining margins, which led
to earnings significantly below the very good level of the
previous first quarter.
In thePlasticssegment,
sales were slightly reduced compared with the first quarter
of 2011. Higher prices and currency effects made a positive
contribution to sales development; sales volumes were
weaker. Lower margins led to a significant decline in
earnings. Furthermore, the scheduled maintenance of the MDI
and TDI plants in Geismar, Louisiana, negatively impacted
earnings in the Polyurethanes division.
Sales in thePerformance
Productssegment were at the level of the very
good previous first quarter. Demand was slightly lower.
Higher sales prices and positive currency effects were able
to offset this decrease in volumes. Sharply increased raw
material costs put pressure on margins; earnings decreased
as a result.
Sales in theFunctional
Solutionssegment increased slightly as a
result of higher demand from the automotive and
construction industries. The sales contribution from
precious metal trading declined. In addition to portfolio
measures, currency effects also contributed positively to
sales development. Earnings increased, thanks in particular
to the contribution from the Catalysts division.
TheAgricultural
Solutionssegment had a very successful start
to 2012. Sales growth was particularly driven by higher
sales volumes and prices. Currency effects also had a
positive impact on sales. Earnings increased
significantly.
Increased production and sales volumes as well as
higher crude oil and gas prices led to significantly
improved sales in theOil &
Gassegment. Natural gas trading volumes grew
mainly as a result of weather conditions. After the
production stoppage in Libya from February to October of
the previous year, crude oil could be continuously produced
there during the first quarter of 2012. Earnings
considerably surpassed the level of the same period of the
previous year.
Otherposted a decline in sales, mostly
due to the divestiture of the styrenics business, which was
contributed to the Styrolution joint venture as of October
1, 2011. As a result of both this transaction and higher
costs from the long-term incentive program, earnings in
Other were also below the level of the previous first
quarter.
Sales and earnings increase in Europe
Due to higher prices and volumes, sales
inEuropewere up 12% compared with
the same quarter of the previous year. The
Oil & Gas segment posted a significant increase
in sales as a result of increased production and sales
volumes as well as higher crude oil and gas prices. The
season started well in the Agricultural Solutions segment.
EBIT before special items rose by 32 million to
1.9 billion, mainly due to significantly improved
earnings in the Oil & Gas segment compared with the first
quarter of 2011.
Sales inNorth
Americadeclined by 4% in U.S. dollars,
remaining at the level of the previous first quarter in
euro terms. The optimization of the supply chain for steam
cracker products in the third quarter of 2011 led to a
decline in volumes. Higher sales prices and positive
currency effects offset this decline. The Performance
Products segment posted a significant sales increase. At
370 million, earnings were 23 million below the
level of the previous first quarter. This was due to lower
earnings contributions from the Chemicals and Plastics
segments resulting from lower margins and the scheduled
shutdown of several plants in Geismar, Louisiana.
Sales in theAsia
Pacificregion decreased by 8% in
local-currency terms and by 3% in euro terms. Along with
lower sales prices, particularly in the Chemicals segment,
the contribution of the styrenics activities to the
Styrolution joint venture was largely responsible for this
development. Decreased volumes, especially in the Plastics
segment, also contributed to the decline in sales. Currency
effects, however, had a positive impact. Especially as a
result of weaker margins for basic products, earnings were
reduced by 197 million to 219 million.
InSouth America, Africa, Middle
East,sales were up year-on-year by 4% in both
local-currency as well as euro terms. Business with crop
protection products was very successful. Sales in the
Oil & Gas segment increased significantly thanks
to higher sales prices. Earnings were reduced by 12
million to 79 million, primarily due to the lower
contribution from the Functional Solutions segment.
About BASF
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 73.5 billion in 2011 and had more than
111,000 employees as of the end of the year.
BASF shares are traded on the stock exchanges in Frankfurt
(BAS), London (BFA) and Zurich (AN). Further information on
BASF is available on the Internet atwww.basf.com.
You can obtain further information from the internet
at the following addresses:
First-Quarter Report (from 7:00 a.m. CEST)
Press release (from 7:00 a.m. CEST)
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)
Note to Editors:
You can download press photos from the internet at
the following
links:
Current press photos from the Annual Meeting
(from 1:00 p.m. CEST)
General corporate press photos
Current TV footage
Forward-looking statements
This release contains forward-looking statements
based on current experience, 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
prove to 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.
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