MOSCOW (MRC) -- BASF, the global petrochemical giant, has increased sales and earnings in 2013 compared with the previous year, said the company in its report.
"2013 was again a demanding year, with a lot of headwind for our industry. Nevertheless, we achieved our goal: We sold more, worked more closely together with our customers and enhanced our portfolio," said Dr. Kurt Bock, Chairman of the Board of Executive Directors of BASF SE at the Annual Press Conference in Ludwigshafen.
Sales of BASF Group in the fourth quarter of 2013 were EUR18.1 billion, slightly above the same period of the previous year. Volumes increased in all segments. Sales prices were slightly lower overall in the fourth quarter; negative currency effects lowered sales in all divisions.
For the full year, sales rose by just under 3% to reach EUR74.0 billion. A considerable, mainly volumes-driven sales increase in the Oil & Gas and Agricultural Solutions segments was largely responsible for this development. Sales slightly declined in the chemicals business, which includes the Chemicals, Performance Products and Functional Materials & Solutions segments, despite higher sales volumes. This was mainly on account of negative currency effects. EBIT before special items in 2013 rose by EUR543 million to EUR7.2 billion. In addition to the successful business with crop protection products and a higher contribution from the Functional Materials & Solutions segment, this increase was also due in large part to the earnings improvement in Other.
Net income amounted to EUR4.8 billion, slightly above the previous year’s level.
"At EUR7.9 billion, operating cash flow reached a record level," said Dr. Hans-Ulrich Engel, Chief Financial Officer of BASF.
"We do not expect strong tailwinds this year either. Nevertheless, we are cautiously optimistic with regards to global economic development. The world economy is expected to grow slightly faster in 2014 than in 2013, despite continuing volatility," said Bock. For the global chemical industry, the company anticipates growth rates comparable with the previous year’s level and forecasts somewhat higher growth in key customer industries such as the transportation, consumer goods and electronics industries. This will likely have a positive effect on BASF’s business.
For 2014, BASF assumes the following economic conditions (previous year figures in parentheses): global economic growth: +2.8% (+2.3%); growth in global chemical production (without pharmaceuticals): +4.4% (+4.6%).
We remind that, as MRC wrote previously, BASF has recently signed a contract to divest its liquid masterbatch business in Clermont de l’Oise, France, to Audia International, a large global supplier of polyolefins and color masterbatches. The transaction is expected to close in mid 2014. The parties have agreed not to disclose financial details of the agreement.
BASF is the world’s leading chemical company. Its portfolio ranges from chemicals, plastics, performance products and crop protection products to oil and gas.
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