BASF increases sales and income from operations in 2012

Record year in Agricultural Solutions and Oil & Gas

27-Feb-2013 - Germany

BASF maintained its good performance in 2012. The company exceeded the 2011 record levels in sales and income from operations (EBIT) and once again earned a substantial premium on the cost of capital. Dr. Kurt Bock, Chairman of the Board of Executive Directors of BASF SE, said at the Annual Press Conference: “The Oil & Gas and Agricultural Solutions segments achieved new records, while development in our chemicals business was weaker than in 2011.”

Sales in the fourth quarter of 2012 were €19.6 billion, 9% higher than in the same quarter of the previous year. This increase was mainly due to higher volumes in almost all segments as well as price and currency effects. At €1.8 billion, EBIT before special items was 18% above the level of the previous fourth quarter, mainly due to significantly higher volumes in Oil & Gas as well as improved earnings in Polyurethanes and Construction Chemicals.

For the full year, BASF increased sales to €78.7 billion, up 7% compared with 2011. EBIT before special items improved by 5% to €8.9 billion and EBIT by almost 5% to around €9 billion. Net income fell by €1.3 billion to €4.9 billion, due in part to the higher earnings contribution from Oil & Gas and thus the significantly higher taxes. Furthermore, gains from the sale of BASF’s shares in K+S Aktiengesellschaft in 2011 were predominantly tax-free.

At the Annual Shareholders’ Meeting, the Board of Executive Directors and the Supervisory Board will propose a higher dividend of €2.60 per share. This is an increase of €0.10 compared with the previous year. Based on the 2012 year-end share price of €71.15, the dividend yield would be 3.65%.

“At €6.7 billion, cash flow from operating activities once again reached a high level,” said Dr. Hans-Ulrich Engel, Chief Financial Officer of BASF. The equity ratio of 40.1% remained at a high level.

https://www.chemeurope.com/en/news/141864/basf-increases-sales-and-income-from-operations-in-2012.html