BASF's North American Business Posts 65 Percent Rise in Earnings
August 03 2005 - 9:00AM
PR Newswire (US)
Company achieves $250 million in fixed cost reductions one year
early FLORHAM PARK, N.J., Aug. 3 /PRNewswire/ -- BASF's North
American business today reported that income from operations before
special items in the second quarter rose 65 percent to 351 million
euro (approximately $424.7 million) from 213 million euro in the
same quarter in 2004, on the strength of the company's continuing
efforts to reduce costs and increase margins. Second quarter sales
in North America were 2.59 billion euro (approximately $3.13
billion), up 17 percent from 2.20 billion euro in the second
quarter of 2004. The improvement in results despite high energy and
raw material cost is due to solid economic growth in North America,
the impact of the restructuring program that began in 2002, and
continued focus on increasing margins. (BASF AG, the parent company
based in Ludwigshafen, Germany, today announced its second quarter
results. Details are available at
http://www.basf.de/interimreport.) For the first six months of
2005, North American earnings from operations before special items
were 622 million euro (approximately $752.6 million), more than
double the 303 million euro for the first six months of 2004. North
American sales for the first six months were 4.85 billion euro
(approximately $5.87 billion), up 18 percent from 4.12 billion euro
in the same period a year ago. Klaus Peter Loebbe, Chairman and
Chief Executive Officer of BASF Corporation, the North American
affiliate of BASF AG, said, "In the second quarter, BASF achieved
the goal that we set in 2003 of $250 million in sustainable annual
earnings improvements through fixed cost reductions in North
America. We reached this goal one year earlier than scheduled due
to focused implementation of our targeted restructuring measures."
Loebbe added, "Since 2002, we have made a number of portfolio
changes, restructured our service platform, optimized our plants
and site locations, invested in new technology to streamline
operations, and improved business processes. To date, we have sold
or closed 11 sites and 12 plants, integrated six acquired sites,
and started up seven new plants. Looking ahead, we will continue to
enhance our effectiveness, work closely with customers to deliver
value, and exploit acquisition opportunities." (Note: BASF AG
reports financial results in Euros. References to U.S. dollars are
made using an exchange rate of 1.00 Euro = $1.21 as of the close of
the quarter and are provided solely for the reader's convenience.)
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. Rated in FORTUNE
magazine as America's Most Admired Chemical Company, 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 Corporation CONTACT: Robert
Guenther, +1-973-245-6013, mobile, +1-973-519-2160, Web site:
http://www.basf.com/usa http://www.basf.com/
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