BASF posts solid earnings in '08
FE Report | Sunday, 1 March 2009
BASF, the world's leading chemical company registered solid earnings in 2008 despite the deep global economic crisis.
Sales of the German-based company rose by 8 percent compared with 2007 to 62.3 billion euro. This was primarily due to higher prices in all divisions.
"However, BASF was unable to pass on fully raw material prices, which were volatile and higher on average than in 2007," a news release of the company said.
Income from operations (EBIT) before special items was on course for a new record up to the fourth quarter.
At just under E6.9 billion at the end of the year, however, it was 10 percent lower than the record amount posted in 2007.
In 2008, BASF again earned a high premium of E1.6 billion on its cost of capital, compared with E2.9 billion in 2007.
The company is acting quickly and decisively to combat the effects of the global economic crisis.
BASF's Chairman Dr. Jurgen Hambrecht explained: "With our diversified portfolio, we are far better positioned in this recession than other companies in the chemical industry. Strong businesses such as crop protection, nutrition, cosmetics, hygiene as well as oil and gas act as stabilizing factors.
Right now it is particularly important that we are very solidly financed and have one of the best ratings in the chemical industry. Our strengths include a high free cash flow, which, as in previous years, significantly exceeded E2 billion in 2008."
At year end, 2008, the company had an equity ratio of approximately 37 percent.
The financial indebtedness of the BASF Group was E14.5 billion with a liquidity of E2.8 billion.
Approximately 57 percent of financial indebtedness was long-term debt with a maturity of over one year. The company's medium to long-term debt financing is based on corporate bonds with a balanced maturity profile.
Despite the tense situation on the credit markets, BASF was able to finance itself with commercial paper without any difficulty.
Sales of the German-based company rose by 8 percent compared with 2007 to 62.3 billion euro. This was primarily due to higher prices in all divisions.
"However, BASF was unable to pass on fully raw material prices, which were volatile and higher on average than in 2007," a news release of the company said.
Income from operations (EBIT) before special items was on course for a new record up to the fourth quarter.
At just under E6.9 billion at the end of the year, however, it was 10 percent lower than the record amount posted in 2007.
In 2008, BASF again earned a high premium of E1.6 billion on its cost of capital, compared with E2.9 billion in 2007.
The company is acting quickly and decisively to combat the effects of the global economic crisis.
BASF's Chairman Dr. Jurgen Hambrecht explained: "With our diversified portfolio, we are far better positioned in this recession than other companies in the chemical industry. Strong businesses such as crop protection, nutrition, cosmetics, hygiene as well as oil and gas act as stabilizing factors.
Right now it is particularly important that we are very solidly financed and have one of the best ratings in the chemical industry. Our strengths include a high free cash flow, which, as in previous years, significantly exceeded E2 billion in 2008."
At year end, 2008, the company had an equity ratio of approximately 37 percent.
The financial indebtedness of the BASF Group was E14.5 billion with a liquidity of E2.8 billion.
Approximately 57 percent of financial indebtedness was long-term debt with a maturity of over one year. The company's medium to long-term debt financing is based on corporate bonds with a balanced maturity profile.
Despite the tense situation on the credit markets, BASF was able to finance itself with commercial paper without any difficulty.