BASF reports record sales
BASF sales rose 15% in 2011 compared with 2010
BASF has reported a record increase in sales which rose to €73.5bn in 2011, a 15% increase over the record levels it achieved in 2010. Income from operations (EBIT) before special items also improved, rising by 4% to €8.4bn for the full year 2011 and EBIT increased almost 11% to €8.6bn.
Sales in Q4, at around €18.1bn, were also higher than in 2010, although EBIT before special items was down 14% to €1.5bn compared with the same period in 2010, reflecting the slowing of the economy and the consequent caution customers showed in their ordering.
In Chemicals, price increases in all divisions led to higher sales in Q4. And for the full year, sales rose by 14% to around €13bn in 2011 and EBIT before special items grew 6% to a new high of €2.4bn. However, weaker demand and ongoing high raw material prices meant that EBIT before special items was lower in the fourth quarter of 2011 than in Q4 2010.
“2011 was another successful year for BASF,” said chair of the board of executive directors Dr Kurt Bock. “We expect the global economy to pick up speed over the course of 2012 following a moderate start. Uncertainties due to the sovereign debt crises, in particular Europe and the United States, will dampen growth prospects. Positive impetus for the chemical industry will again come from the emerging markets.”
The company plans to increase its global research and development expenditure to €1.7bn in 2012, up from 2010’s €1.6bn.
