BASF's North American Business Posts 25 Percent Rise in Earnings
November 02 2005 - 10:00AM
PR Newswire (US)
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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