LUDWIGSHAFEN, GERMANY -- (Marketwire) -- 02/26/13 --
•Full year 2012:•Sales EUR 78.7 billion (plus 7%) •EBIT before special items EUR 8.9 billion (plus 5%) •Record year in Agricultural Solutions and Oil & Gas; earnings in the chemicals business below prior year •4th quarter 2012:•Sales EUR 19.6 billion (plus 9%) •EBIT before special items EUR 1.8 billion (plus 18%) •Dividend proposal EUR 2.60 (2011: EUR 2.50) •Outlook 2013: Increase in sales and earnings targeted
BASF maintained its good performance in 2012. The company exceeded the 2011 record levels in sales and income from operations (EBIT) and once again earned a substantial premium on the cost of capital. Kurt Bock, Chairman of the Board of Executive Directors of BASF SE, said at the Annual Press Conference: "The Oil & Gas and Agricultural Solutions segments achieved new records, while development in our chemicals business was weaker than in 2011."
Sales in the fourth quarter of 2012 were EUR 19.6 billion, 9% higher than in the same quarter of the previous year. This increase was mainly due to higher volumes in almost all segments as well as price and currency effects. At EUR 1.8 billion, EBIT before special items was 18% above the level of the previous fourth quarter, mainly due to significantly higher volumes in Oil & Gas as well as improved earnings in Polyurethanes and Construction Chemicals.
For the full year, BASF increased sales to EUR 78.7 billion, up 7% compared with 2011. EBIT before special items improved by 5% to EUR 8.9 billion and EBIT by almost 5% to around EUR 9 billion. Net income fell by EUR 1.3 billion to EUR 4.9 billion, due in part to the higher earnings contribution from Oil & Gas and thus the significantly higher taxes. Furthermore, gains from the sale of BASF's shares in K+S Aktiengesellschaft in 2011 were predominantly tax-free.
At the Annual Shareholders' Meeting, the Board of Executive Directors and the Supervisory Board will propose a higher dividend of EUR 2.60 per share. This is an increase of EUR 0.10 compared with the previous year. Based on the 2012 year-end share price of EUR 71.15, the dividend yield would be 3.65%.
"At EUR 6.7 billion, cash flow from operating activities once again reached a high level," said Hans Engel, CEO of BASF Corporation and Chief Financial Officer of BASF SE. The equity ratio of 40.1% remained at a high level.
BASF in North America
At EUR 14.6 billion (approx. $18.7 billion), BASF sales in North America in 2012 were 1% below the level of 2011. Sales rose considerably in the Plastics and Agricultural Solutions segments, but declined in the Chemicals segment. North America accounted for 18% of BASF Group sales in 2012. Income from operations (EBIT) in North America decreased by 27% to EUR 964 million, mostly as a result of the lower contribution from the Chemicals segment.
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