All Stories
Follow
Subscribe to BASF SE

BASF SE

Adding value through growth and innovation: BASF's formula for success

Ludwigshafen (ots)

* BASF presents excellent financial statements for 2000
   * Sales climb by 22 percent
   * Income from operations before special items rises by 15 percent
In 2000, BASF posted the highest sales and the highest income from
operations before special items in its history. Sales climbed by 22
percent to almost Euro36 billion, whereas income from operations
before special items rose by more than 15 percent to Euro 3.4
billion. The company plans to pay out a dividend of Euro 2.00 per
share - the highest ever in BASF's history.
"I am pleased to be able to present such good figures for BASF,
after what has not been an easy year for the chemical industry,"
explained Dr. Jürgen F. Strube, Chairman of the Board of Executive
Directors of BASF Aktiengesellschaft, in Ludwigshafen, Germany today
(March 14, 2001). "Our formula for success is paying off," he added,
before going on to say that he intends to increase the value of the
world's largest chemical company through growth and innovation.
Portfolio actively restructured
By rapidly and precisely restructuring its portfolio in recent
years, BASF has set the stage for further growth. Important measures
in 2000 included:
  • The acquisition of the superabsorbents manufacturer Chemdal has made BASF the clear number one in this large growth market.
  • Following the purchase of the crop protection business of American Home Products, BASF has become the world's number three company in agricultural products.
  • In vitamins, BASF has significantly strengthened its position as number two in the world by acquiring the vitamins business of Takeda.
  • By combining its polyolefins business with that of Shell in the Basell joint venture and its textile dye business in DyStar, BASF has strengthened its concentration on the core business of innovative chemistry.
  • Through the sale of its pharmaceuticals activities to Abbott, BASF has made a gain of Euro 6 billion and has thus significantly expanded its financial potential.
On the basis of its future-oriented portfolio BASF intends to
adhere to its stated aim of increasing its income from operations
before special items in 2000, 2001 and 2002 by an average of at least
10 percent. In achieving this goal, the company will receive
important support from its oil and gas business. "In this segment we
were able to more than double our earnings in 2000. We were thus able
to compensate for high raw material costs that put margins in our
chemicals businesses under pressure. This compensatory mechanism is
not just pure chance, but rather a deliberate strategic instrument,"
explained Strube.
Growth in all segments and regions
2000 was a year of pronounced growth for BASF. It posted
double-digit sales growth in all segments. In each quarter, the
company raised sales volumes by an average of 6.5 percent. Unlike
many of its competitors, BASF also achieved double-digit growth in
sales in the last quarter of 2000. However, the slowdown  of the U.S.
economy made it more difficult to pass on increases in the prices of
raw materials to customers. In the fourth quarter therefore, income
from operations before special items was at the previous year's
level.
Double-digit sales growth was achieved in all regions. In
particular, BASF has expanded its position in the growth regions Asia
and South America, where it increased sales by 28 percent and 36
percent, respectively. In North America, BASF also grew faster than
the market, increasing sales by 24 percent.
All operating divisions made a positive contribution to income
from operations with the exception of Agricultural Products, which is
still burdened by the costs of integrating the recently acquired crop
protection business. However, the integration process is running
smoothly and is expected to achieve annual cost savings of
approximately $250 million, with half the amount being achieved in
2001.
In addition to growth, innovations are the other half of BASF's
formula for adding value. The company's innovative strength is based
on continually renewing products and processes, its creative system
solutions, and the broad potential of the chemistry it uses. "We are
continually improving our products and developing new ones. New
agricultural products such as our latest fungicide F 500(r) are
extremely effective, environmentally friendly and offer very
promising returns," said Strube.
Chemical business in 2001: Solid with more activity in the second
half-year
   BASF's Chairman expects chemical business to be solid in 2001,
although there will be differences between the main economic regions.
The company will use its global position to balance these differences
and thus achieve good results for the year in total. Strube
anticipates the first half-year will be somewhat subdued for BASF and
the industry as a whole, but that business will pick up momentum in
the third and fourth quarters. "In general, we are positioning
ourselves for the upturn in the chemical market expected in 2002 in
the United States and the world markets. To coincide with this,
important large-scale plants like our cracker in Port Arthur will go
on stream to profit from this growth. Our corporate strategy is
paying off, and we are confident that following a successful year
2000, we will also be successful in facing the challenges of 2001,"
he explained.
BASF is a transnational chemical company that aims to increase and
sustain its corporate value through growth and innovation. The
company's product range includes high-value chemicals, plastics,
colorants and pigments, dispersions, automotive and industrial
coatings, agricultural products and fine chemicals as well as crude
oil and natural gas. BASF's approach to integration, known in German
as "Verbund," is one of its particular strengths, ensuring cost
leadership and a unique competitive advantage. With sales in 2000 of
about Euro 36 billion (circa $34 billion) and a workforce of 103,000
employees, BASF is one of the world's leading chemical companies.
BASF acts in accordance with the principles of Sustainable
Development. BASF shares are traded on the stock exchanges in
Frankfurt (BAS), London (BFA) and New York (BF). The company's
Internet address is www.basf.com.
Information on the Annual Press Conference can be found on the
Internet at:
         English: www.basf.de/pcon
         German: www.basf.de/pk
You can download photos of BASF from the Internet at:
www.basf.de/pressphotos.
Forward-looking statements
This release contains forward-looking statements under the Private
Securities Litigation Reform Act of 1995. These statements are based
on current expectations, estimates and projections of BASF management
and currently available information. They are not guarantees of
future performance, involve certain risks and uncertainties that are
difficult to predict and are based upon assumptions as to future
events that may not prove to be accurate. Many factors could cause
the actual results, performance or achievements of BASF to be
materially different from those that may be expressed or implied by
such statements. Such factors include those discussed in BASF's Form
20-F filed with the Securities and Exchange Commission. We do not
assume any obligation to update the forward-looking statements
contained in this release.
Key figures from our 2000 Financial Report
BASF Group
Million Euro        2000         1999           Change
                                                    in %
Sales              35,946       29,473            22.0
Income from 
   Operations before 
   special items       3,400        2,950            15.3
Income from 
   Operations          3,070        2,009            52.8
Income before taxes
   and special items   3,024        2,795             8.2
Income before 
   taxes and minority
    interests           2,827        2,606            8.5
Net income           1,240        1,237            0.2
Cash provided 
   by operating 
   activities           2,992        3,255           -8.1
Capital 
   expenditures         6,931        3,253          113.1
Research and 
   development 
   expenses             1,526        1,333           14.5
Dividend of BASF 
   Aktiengesellschaft   1,215          695           74.8
Dividend per share 
   (Euro)                2.00         1.13           77.0
Number of employees 103,273     104,628           -1.3
   (December 31)
Sales in segments
in million Euro       2000         1999         Change
                                                    in %
Chemicals            5,789        4,423         30.9
   Plastics & Fibers   11,030        8,628         27.8
   Colorants & 
   Finishing Products   7,109        6,395         11.2
   Health & Nutrition   6,717        5,602         19.9
   Oil & Gas            3,957        3,051         29.7
   Other*               1,344        1,374         -2.2
Total               35,946       29,473         22.0
Income from operations in segments
in million Euro       2000         1999         Change
                                                    in %
Chemicals             713           737          -3.3
   Plastics & Fibers     889           644          38.0
   Colorants & 
   Finishing Products    522           608         -14.1
   Health & Nutrition   -201          -588          65.8
   Oil & Gas           1,310           741          76.8
   Other*               -163          -133         -22.6
Total               3,070         2,009          52.8
Capital expenditures in segments
in million Euro       2000         1999         Change
                                                    in %
Chemicals              880          765          15.0
   Plastics & Fibers      599          998         -40.0
   Colorants & 
   Finishing Products   1,260          324         289.0
   Health & Nutrition   3,464          281          .
   Oil & Gas              267          524         -49.0
   Other*                 461          361          27.7
Total                6,931        3,253         113.1
* Sales and earnings of fertilizer business and of other
businesses, as well as expenditures, earnings and assets not
allocated to the segments.
Sales by regions (location of customer)
in million Euro       2000         1999         Change
                                                    in %
Europe              20,103       16,996          18.3
   - Thereof Germany  (7,897)      (6,934)        (13.9)
   North America 
   (NAFTA)              8,419        6,773          24.3
   South America        2,500        1,842          35.7
   Asia, Pacific 
   Area, Africa         4,924        3,826          27.5
Total               35,946       29,473          22.0
Capital expenditures by region
in million Euro       2000         1999         Change
                                                    in %
Europe               2,674        1,950         -37.1
   - Thereof Germany   (1,298)      (1,595)      (-18.6)
   North America 
   (NAFTA)              3,294        1,105         198.1
   South America          431           83         419.3
   Asia, Pacific 
   Area, Africa           532          115         362.6
Total                6,931        3,253         113.1
Key BASF share data
                             2000           1999
Number of shares 
   on December 31             607            621
   (in millions)
Per share in Euro
Earnings per share        2.02           2.00
Earnings per share
   according to U.S. GAAP    2.37           2.14
Cash provided by
   operating activities      4.88           5.27
Dividend                  2.00           1.13
Dividend with tax credit  2.86           1.61
Dividend yield 
   excluding tax credit      4.2 %         2.2 %
Dividend yield 
   including tax credit      5.9 %         3.1 %
Stockholders' equity      23.55         22.78
Year-end share price      48.17         51.90
Highes share price        50.68         52.20
Lowest share price        39.40         30.19

Contact:

Michael Grabicki
P 091e
Tel. (06 21) 60-9 99 38
Fax (06 21) 60-2 01 29
E-Mail: michael.grabicki@basf-ag.de

Original content of: BASF SE, transmitted by news aktuell

More stories: BASF SE
More stories: BASF SE
  • 12.03.2001 – 19:28

    Bilanz-Pressekonferenz im Internet

    Ludwigshafen (ots) - Am Mittwoch, 14. März 2001 findet in Ludwigshafen die Bilanz-Pressekonferenz der BASF Aktiengesellschaft statt, auf der das Unternehmen seine Ergebnisse für das Jahr 2000 erläutert. An diesem Tag stehen Ihnen folgende Informationen zur Pressekonferenz im Internet zur Verfügung. Finanzbericht 2000 deutsch: >www.basf.de/finanzbericht ab 07.30 Uhr MEZ englisch: >www.basf.de/financial-report Jahresbericht 2000 deutsch: ...

  • 15.12.2000 – 08:29

    ots Ad hoc-Service: BASF AG <DE0005151005> Pharma business sold for $6.9 billion

    Ludwigshafen (ots Ad hoc-Service) - Pharma business sold for $6.9 billion: "BASF to focus more strongly on innovative chemistry, a highly efficient Verbund and a global presence" - Increasing BASF's financial flexibility - Accelerating the ongoing share buy-back program and reducing financial indebtedness BASF (NYSE: BF) is focusing on the ...