BASF announces record sales and earnings in 2010
But expresses concern over Libya situation
BASF enjoyed double digit sales growth in 2010 enhanced by a strong fourth quarter. Compared with 2009, total sales rose 26% to reach €63.9bn. Meanwhile, income from operations (EBIT) before special items increased 68% to reach €8.1bn.
The chemical company also reported a favourable fourth quarter. Fourth quarter sales reached €16.4bn, higher than any other quarter of 2010 and 25% up on Q4 2009 sales. However, EBIT before special items was – at €1.8bn – below the level of previous quarters. This says BASF was largely due to higher provisions for its long-term incentive programme as a result of the strong increase in the company’s year-end share price.
In the past year, BASF has strengthened its portfolio through the acquisition of Cognis and the further integration of Ciba.
“In the chemicals business in particular we were able to take advantage of the strong economic recovery in 2010, which was more dynamic than we all initially expected,” comments Jürgen Hambrecht, chairman of BASF’s board of executive directors.
Looking forward, BASF expects to significantly exceed these record levels in 2011. “BASF has had a very strong start to 2011. However we are concerned about Libya,” adds Hambrecht. “With respect to Libya, BASF hopes that the situation will calm down soon.”
