This news article was originally written in Spanish. It has been automatically translated for your convenience. Reasonable efforts have been made to provide an accurate translation, however, no automated translation is perfect nor is it intended to replace a human translator. The original article in Spanish can be viewed at BASF aumenta sus ventas e ingresos por operaciones en 2012

BASF Increases his sales and income by operations in 2012

04/03/2013

4 March 2013

BASF kept his behaviour during 2012. The company surpassed his record levels of 2011 in terms of sales and income by operations (EBIT) and again achieved an important premium on the cost of capital. In the frame of the annual presses conference, Kurt Bock, president of the Managerial Board of BASF , affirmed the following: “The segments Oil & gas and Agricultural Solutions reached new records, whereas the development of our chemical businesses was inferior to the registered in 2011”.

The sales in the fourth quarter of the 2012 rose to 19.600 million euros, 9% more than in the same quarter of the previous year. This increase owed mainly to the increase of volumes in practically all the segments, in addition to to the price and the effect of the divisas. With a value of 1.800 million euros, the EBIT before special effects was 18% upper to the level of the fourth quarter of the previous exercise, mainly thanks to some significantly greater volumes in the segment Oil & gas, in addition to to the improvement of the profits in Polyurethanes and Construction Chemicals.

Throughout the year, BASF increased its sales to 78.700 million euros, one 7% increase in 2011. EBIT before special effects improved by 5%, to stand at 8.900 million euros, while EBIT grew by almost 5% and stood around 9 billion euros. Net income fell by 1.3 billion euros to stand at 4.9 billion euros, in part by the largest revenue contribution from the segment Oil & Gas, which brought get a significantly higher taxes. Also profits from the sale in 2011 of k + s Aktiengesellschaft of BASF shares were predominantly free of taxes.

At the annual meeting of stockholders, the Board of Directors and the Supervisory Board will propose a higher dividend of 2.60 euros per share. This represents an increase of 10 euro cents compared to the previous year. According to the share price at the close of the financial year 2012, located in 71,15, the dividend yield would be 3.65%.

"Cash flow from operating activities, amounting to 6.7 billion euros, returned to be at a high level," said Hans-Ulrich Engel, Chief Financial Officer of BASF. The debt ratio on equity, from 40,1%, remained at a high level.

Forecasts for 2013

The forecasts of BASF for the exercise 2013 base in the following economic conditions (the figures of the previous exercise appear between bracket):

world-wide economic Growth: +2,4% (+2,2%)
Growth of the global chemical production: +3,6% (+2,6%)
A half exchange rate euro/dollar of 1,30 dollars by euro (1,28 dollars by euro)
A half price of the crude of 110 dollars by barrel (112 dollars by barrel).

Increase of the sales in almost all the segments during the fourth quarter

In the segment Chemicals, the sales increased in the fourth quarter of 2012, promoted so much by the price as by the effects of the wallet. The growth of the volume and the favourable conditions of the divisas also contributed to the growth of the income by sales. The EBIT before special effects fell mainly owing to the reduction of the margins and of the enclosures of plants. In all the exercise 2012, the sales increased 7% until reaching the 13.800 million euros. The EBIT before special effects fell 30%, until situating in 1.700 million euros.

The sales in the segment of plastics increased by the increase of volumes and prices, in addition to the positive effect of the divisas. It registered a solid demand continued pertinent of the sector of the automotive sector, especially in North America and Asia. The EBIT before special effects grew of substantial way because of a significant improvement in the profits of the segment of Polyurethanes. In 2012, the sales in the segment of plastics increased 4% and reached the 11.400 million euros. The EBIT before special effects fell 27%, until situating in 873 million euros.

The sales of Performance Products surpassed to the registered during the fourth quarter of the previous exercise, mainly thanks to the increase of volumes. The falls of prices saw compensated by the positive effects of the divisas. The EBIT before special effects in this segment fell owing to the reduction of margins. The corresponding sales to all the exercise 2012, of 15.900 million euros, went around 1% greater that during the previous exercise. The EBIT before special effects fell 17%, until situating in 1.400 million euros.

The sales in the segment Functional Solutions fell slightly in comparison with the fourth quarter of 2012. The volumes were lower, particularly owing to a lower contribution of the trade of lovely metals. The small descent of the prices of sales saw compensated by the favourable conditions of the divisas. The healthy demand in the divisions of Catalysts and Coatings came from of the sector of the automotive sector. The strict gestión of fixed costs comported a substantial increase of the EBIT before special effects. In 2012, the sales were of 11.500 million euros, 1% more than in 2011. The EBIT before special effects, by a value of 561 million euros, went slightly upper to the of the previous exercise.

The sales in the segment of Agricultural Solutions grew in the fourth quarter of 2012. Said growth had to to the increase of volumes, to the acquisition of Becker Underwood and to the favourable effects of the divisas. The sales in Sudamérica increased of significant way in spite of the drought of Brazil. The prices situated just underneath of the high level of the same quarter of the previous year. The EBIT before special effects was inferior to the of the fourth quarter of 2011, owing to the increase of the cost in R&D and of the investments in markets in expansion. Likewise, the income by regalías in North America registered in the fourth quarter of 2011 already had registered in the third quarter of 2012. Like this then, Agricultural Solutions lived another record year in 2012. The sales increased 12%, until situating in 4.700 million euros. The EBIT before special effects grew 28%, until surpassing the 1.000 million euros. It reached the aim of margin of EBITDA of 25%.

The sales in the segment Oil & gas in the fourth quarter experienced a solid growth, mainly thanks to the significant increase of the production of crude in Libya and to the greater volumes of the trade of natural gas. Besides, the set up of new pozos of the conjoint company Achimgaz also contributed to the increase of sales. The EBIT before special effects grew of substantial form. There were special effects by value of 120 million euros that were related with charges by deterioration in the project of development Yme, in Norway. The taxles no compensables on the production of crude rose to 492 million euros. The net income fell 9%, until situating in 250 million euros. The corresponding sales to the complete exercise grew 39%, until reaching the 16.700 million euros, whereas the EBIT before special effects almost duplicated, and situated in 4.100 million euros. The net income also grew and situated in 1.200 million euros.

During the fourth quarter, the sales of the segment Other situated around the 1.200 million euros. These activities include the sale of raw materials, engineering and other services, income by rents and leases. The EBIT before special effects reduced in 91 million euros, mainly by the lowest margins of other businesses. In 2012, they registered some sales of 4.800 million euros, what represents a fall of 24%, and the EBIT before special effects diminished to less 839 million euros. This owed mainly to the desinvestment of the activities of plastics estirénicos and the business of fertilizantes.