BASF in best form: 2004 financial results
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BASF - The Chemical Company - announced its financial results for 2004 at its Annual Press Conference in Ludwigshafen. The company presented hard facts that showed how it successfully achieved its challenging goals in 2004. "The entire BASF team put in a top performance. And we again demonstrated that we create value for all our stakeholders," said Dr. Jürgen Hambrecht, Chairman of the Board of Executive Directors of BASF Aktiengesellschaft.
For the first time for several years BASF again earned its cost of capital - plus a considerable premium of EUR1.8 billion. For a growing number of products it was possible to pass on price increases to the market that were necessary due to significantly higher raw materials prices.
In a competitive market environment, BASF increased sales overall by 13 percent to EUR37.5 billion. Income from operations (EBIT) before special items rose significantly by 64 percent to EUR4.9 billion. Sales and earnings increased in all segments. Earnings were positive in all divisions. The performance of the Chemicals segment was particularly strong, with sales rising by 22 percent and EBIT before special items by 167 percent.
In 2004, BASF also continued to implement restructuring measures to improve its cost situation. All ongoing projects are proceeding successfully, and the goal is to achieve annual cost savings of approximately EUR750 million by the end of 2006.
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