BASF's North American Region Delivers Strong Financial Performance in 2004
March 09 2005 - 8:03AM
PR Newswire (US)
BASF's North American Region Delivers Strong Financial Performance
in 2004 Regional income from operations continues year-to-year
improvement trend FLORHAM PARK, N.J., March 9
/PRNewswire-FirstCall/ -- BASF's financial results for 2004 in the
North American region were strong. Income from operations in the
region increased more twentyfold over 2003, and fourth quarter
earnings showed continued impressive improvement compared to the
same period a year ago. BASF Aktiengesellschaft today announced its
fourth quarter and full-year 2004 results in Ludwigshafen, Germany.
Details can be found under http://www.basf.de/interimreport. Sales
in North America for 2004 were euro 8.165 million (about $11.104
million), up 13.2 percent over euro 7.214 million in fiscal 2003.
Income from operations in 2004 was euro 246 million (about $335
million) up over twentyfold from euro 10 million in 2003. Income
from operations before special items for the year increased to euro
404 million (about $549 million) an increase of 393 percent from
euro 82 million in 2003. The performance marks the third
consecutive year BASF's North American results have improved.
Fourth quarter sales in North America were euro 2.001 million
(about $2.721 million), up 23.6 percent over the fourth quarter of
2003. Income from operations in the fourth quarter 2004 was euro 42
million (about $57 million) up 367 percent from euro 9 million in
the fourth quarter 2003. Income from operations before special
items increased to euro 42 million (about $57 million) an increase
of 82.6 percent from euro 23 million compared with the same period
a year ago. BASF is continuing to successfully implement its North
American restructuring program and has made great progress toward
its goal of reducing costs by at least $250 million by 2006. As of
year-end, the company has achieved annual cost savings of $175
million. The program includes optimizing administrative functions,
manufacturing site operations and business processes. "These
financial results illustrate that our restructuring initiative is
proving to be successful in positioning us to fully benefit from
the current upswing in the U.S. economy and the chemical industry,"
said Klaus Peter Loebbe, Chairman and Chief Executive Officer of
BASF Corporation, BASF's North American affiliate. "Our goal is to
strengthen BASF's North American presence to be able to sustain the
downturns, and prosper in the upturns." Loebbe said that the
company's strong financial performance was driven by aggressive
cost reduction coupled with a diligent approach to passing along
increases in energy and feedstock prices. "We must continue to
rebuild margins if we are to reach re-investment levels for our
businesses," he said. Loebbe added that BASF is committed to the
North American market, which is the largest chemicals market in the
world. "The North American chemical sector continues to be strong,
vibrant and growing. It is a critical market to BASF's global
presence, and our strategies are designed to support long-term
profitability despite changing market conditions," he said. "I am
optimistic that the North American chemical industry will stay
competitive through innovation, customer and industry focus, and
smart portfolio management." BASF's strategy going into 2005 will
continue a keen focus on programs to enhance competitiveness by
reducing fixed costs, enhancing margins, strategically improving
the company's business portfolio, and in delivering greater
customer value through innovation. Note: BASF Group reports
financial results in Euros. References to U.S. dollars are made
using the exchange rate effective on December 31, 2004, of euro
1.00 = $1.36. 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.(R) BASF Corporation, headquartered in New Jersey,
is the North American affiliate of BASF AG, Ludwigshafen, Germany.
We employ about 10,000 people in North America and had sales of
approximately $11 billion in 2004. For more information about
BASF's North American operations, or to sign up to receive news
releases by e-mail, visit http://www.basf.com/usa. BASF is the
world's leading chemical company: The Chemical Company. Its
portfolio ranges from chemicals, plastics, performance products,
agricultural products and fine chemicals to crude oil and natural
gas. As a reliable partner to virtually all industries, BASF's
intelligent solutions and high- value products help its customers
to be more successful. BASF develops new technologies and uses them
to open up additional market opportunities. It combines economic
success with environmental protection and social responsibility,
thus contributing to a better future. In 2004, BASF had
approximately 82,000 employees and posted sales of more than $50
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
http://www.basf.com/. DATASOURCE: BASF CONTACT: Jack Maurer of
BASF, Tel: +1-973-245-6072, E-mail: Web site:
http://www.basf.com/usa
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