Company estimates hurricane-related losses at euro 140 million FLORHAM PARK, N.J., Nov. 2 /PRNewswire/ -- BASF's North American business today reported that earnings from operations before special items in the third quarter rose 25 percent to euro 110 million ($133 million) from euro 88 million in the same quarter in 2004, on the strength of higher sales and the company's continuing efforts to increase margins and reduce costs. Third quarter sales in North America were euro 2.29 billion (approximately $2.77 billion), up 12 percent from euro 2.04 billion in the third quarter of 2004. The company said that Hurricanes Rita and Katrina would reduce EBIT by euro 140 million ($169 million) in the third and fourth quarters. Of that total, euro 20 million ($24 million) were reflected in the third quarter results with the balance of the earnings impairment expected in the fourth quarter. (BASF AG, the parent company based in Ludwigshafen, Germany, today announced its third quarter results. Details are available at http://www.basf.de/interimreport.) For the first nine months of 2005, North American earnings from operations before special items were euro 732 million ($885 million), compared to the euro 391 million for the first nine months of 2004. North American sales for the first nine months were euro 7.14 billion ($8.64 billion), up 16 percent from euro 6.16 billion 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, "Despite the adverse impact of the hurricanes on our Gulf Coast manufacturing sites, BASF grew EBIT in North America by 25 percent in the third quarter. This reflects our progress toward achieving our cost reduction targets totaling $400 million by mid-2007 as well as our focus on continued margin improvement. In addition, we are implementing a Commercial Effectiveness initiative and expect our EBIT to rise more than $200 million annually by 2007. Commercial Effectiveness involves adoption of new pricing methodologies and business models and focusing technical and developmental capabilities on customers with whom BASF can grow profitably." (Note: BASF AG reports financial results in euros. References to U.S. dollars are made using an exchange rate of euro 1.00 = $1.21 as of the close of the third 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, , for BASF Corporation Web site: http://www.basf.com/usa http://www.basf.com/ http://www.basf.de/interimreport

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