| BASF's results in North America show continued
improvement
Regional results demonstrate progress in third quarter, year to
date
FLORHAM PARK, N.J., November 11, 2004 -- BASF's financial performance
for the North American region continues to show substantial improvement
with third-quarter and year-to-date results comparing favorably
to the same period a year ago.
BASF Aktiengesellschaft announced its third-quarter financial results
today in Ludwigshafen, Germany. Details can be found under www.basf.de/interimreport.
In the third quarter, sales in North America increased by 23 percent
over the same period a year ago to EUR 2 billion (about $2.5 billion).
Income from operations before special items increased to EUR 78
million (about $96 million) as compared to a loss in the third quarter
of 2003 of EUR 22 million (about $27 million). For the first nine
months of 2004, sales in North America increased 10 percent compared
to the same period a year ago to EUR 6.2 billion (about $7.6 billion).
Income from operations before special items increased to EUR 362
million (about $445 million) from EUR 59 million (about $73 million)
in the same period a year ago.
“Our third-quarter financial results demonstrate an improved
economic environment and the continued success of our restructuring
initiatives to improve profitability in North America. All BASF
divisions operating in North America have improved profitability
as compared to the first three quarters of last year,” said
Klaus Peter Loebbe, Chairman and Chief Executive Officer of BASF
Corporation, BASF’s North American affiliate.
“We are continuing to achieve our objectives for fixed cost
reductions. We are also benefiting from improvements in volumes
and improved portfolio performance resulting from acquisitions and
divestitures. However, as a result of continued increases in raw
material and energy prices, we must continue to increase selling
prices in order to achieve an appropriate return on investment,”
Loebbe said.
BASF is continuing to successfully implement its North American
restructuring program and expects to achieve its goal of reducing
costs by at least $250 million by 2006. Based on progress to date,
the company expects to achieve $175 million in savings in North
America in 2004. The program involves optimizing administrative
functions, manufacturing site operations and business processes.
Note: BASF Group reports financial results in Euros. References
to U.S. dollars are made using the exchange rate effective on September
30, 2004, of EUR 1.00 = $1.23. This conversion is provided solely
for the convenience of the reader.
BASF – The Chemical Company. We don’t make
a lot of the products you buy. We make a lot of the products you
buy better.®
BASF Corporation, headquartered in New Jersey, is the North American
affiliate of BASF AG, Ludwigshafen, Germany. We employ about 11,000
people in North America and had sales of approximately $9 billion
in 2003. For more information about BASF’s North American
operations, or to sign up to receive news releases by e-mail, visit
www.basf.com/usa.
BASF is the world’s leading chemical company. Our goal is
to grow profitably and further increase the value of our company.
We help our customers to be more successful through intelligent
system solutions and high-quality products. BASF’s portfolio
ranges from chemicals, plastics, performance products, agricultural
products and fine chemicals to crude oil and natural gas. Through
new technologies we can tap into additional market opportunities.
We conduct our business in accordance with the principles of sustainable
development. In 2003, BASF had sales of approximately $42 billion.
BASF shares are traded on the stock exchanges in Frankfurt (BAS),
London (BFA), New York (BF), Paris (BA) and Zurich (AN). Further
information on BASF is available on the Internet at www.basf.com.
For more information, contact:
Tim Fitzpatrick
BASF
Tel: (973) 245-6012
E-mail: fitzpat@basf.com
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