6-K UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
August 3, 2005
BASF AKTIENGESELLSCHAFT
(Exact name of Registrant as Specified in its Charter)
BASF CORPORATION
(Translation of Registrant's name into English)
Carl Bosch Strasse 38, LUDWIGSHAFEN, GERMANY 67056
(Address of Principal Executive Offices)
Indicate by check mark whether the Registrant files or will file annual
reports under cover Form 20-F or Form 40-F
Form 20-F X Form 40-F
Indicate by check mark whether the Registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
If "Yes" is marked, indicate below the file number assigned to the
Registrant in connection with Rule 12g3-2(b): 82- .
BASF Raises Outlook for 2005
LUDWIGSHAFEN, Germany--(BUSINESS WIRE)--Aug. 3, 2005--BASF
(NYSE:BF)(FWB:BAS)(LSE:BFA):
-- Significant increase in sales to EUR 10.6 billion (plus 14
percent)
-- EBIT before special items of EUR 1.7 billion (plus 31 percent)
-- Successful start of Verbund site in Nanjing, China
-- Earnings jump in North America
-- Outlook for 2005: sales and earnings above strong 2004 level
BASF remained on its path to success in the second quarter of 2005
and again posted very strong earnings. Sales rose 14 percent to EUR
10.6 billion compared with the second quarter of 2004; income from
operations (EBIT) before special items climbed 31 percent to EUR 1.7
billion. Cumulative sales in the first half of 2005 amounted to EUR
20.7 billion, or almost 13 percent more than in the same period of the
previous year. In the first half, BASF increased EBIT before special
items by 32 percent to EUR 3.2 billion compared with 2004.
Sales growth was primarily due to urgently needed price increases.
Although raw material costs were volatile and rose continuously, BASF
succeeded in gradually raising its margins to the necessary level. The
good volume growth of 3 percent in the second quarter and 2 percent in
the first half builds on the already strong level posted in 2004 and
fits with the company's "value over volume" concept.
During his presentation of the quarterly results on August 3,
2005, BASF Chairman Dr. Jurgen Hambrecht thanked all employees for
their outstanding performance in a difficult economic environment:
"Prices for raw materials, and for crude oil in particular, have
reached unprecedented levels. Economic growth remains weak in many
parts of Europe. The geopolitical situation remains tense."
Outlook for full year 2005: Stronger performance than in 2004
Hambrecht expects the chemical industry to continue on a growth
path in the second half of the year. At approximately 3 percent,
however, he anticipates production growth for the full year to be
slower than in the record year 2004, which represents a very high
baseline for further growth. The strongest impulses for growth are
again likely to continue to come from North America and Asia.
"The coming months therefore offer both opportunities and risks.
Our aim is to capitalize on the opportunities and to assess the risks
correctly. We want to complete our major capital expenditure projects
on schedule and to continue with our successful measures for
restructuring and achieving additional cost savings. At the same time,
we are working hard to further expand our market position as The
Chemical Company," said Hambrecht.
Overall, Hambrecht is confident when looking to the future, and
the company has raised its outlook for the full year 2005: "We are
expecting significantly higher sales and an increase in EBIT before
special items compared with our already strong performance in 2004."
This forecast assumes that economic growth is not impacted by
unexpected events such as terror attacks, dramatic increases in raw
material prices or currency fluctuations.
Sales and earnings performance
Chief Financial Officer Dr. Kurt Bock pointed out that both EBIT
and earnings after tax in the first half of 2005 were higher than the
full year figures in 2003 and 2002. "This is an indication of BASF's
current earning power," he said.
"We increased sales prices in our chemical businesses in the
second quarter of 2005. In addition, the higher oil price had a
positive impact on sales. Compared with the high level posted in the
second quarter of 2004, most of our operating divisions also increased
sales volumes slightly," said Bock.
After special charges of EUR 70 million, EBIT was EUR 1.6 billion
in the second quarter. The charges were primarily related to
restructuring measures.
Net income increased to a lesser extent than pre-tax earnings.
This was due to the level of noncompensable oil production taxes,
which are tied to the oil price. These taxes more than doubled in the
second quarter, increasing to EUR 267 million. Net of this effect, the
tax rate was at the same level as in the second quarter of 2004 at
approximately 34 percent.
Earnings per share increased 14 percent to EUR 1.48. The decline
in the number of shares outstanding as a result of share buybacks had
a positive effect.
Successful projects in all regions
BASF is continuing with its restructuring measures and is
optimizing its portfolio in all regions.
Second-quarter sales by location of company in Europe totaled EUR
6.2 billion. This corresponds to an increase of 11 percent. EBIT
before special items rose 28 percent in Europe.
There was very positive news from the Ludwigshafen site in the
second quarter. After three years, the Site Project has been
successfully completed, thus significantly improving the site's
competitiveness. At the same time, costs in Ludwigshafen were
permanently reduced by EUR 480 million per year.
In North America, sales rose by more than 17 percent. In local
currency terms, sales increased by 23 percent. This was due equally to
higher prices and higher volumes. The increase in EBIT before special
items by 65 percent to EUR 351 million is evidence of the success of
the company's measures to restructure its business in North America.
BASF has already achieved its targeted savings of $250 million, one
year ahead of schedule.
In the South America, Africa, Middle East region, sales by
location of company declined by 4 percent. This was due to unfavorable
conditions in the agro business as a result of extremely dry weather
in parts of South America. EBIT before special items fell by 73
percent.
The Asia Pacific region continues to demonstrate rapid growth.
BASF increased sales by location of company by 24 percent and EBIT
before special items by 34 percent.
"China continues to be the most powerful engine for growth in the
region. We want to increase the performance of this engine even
further through major investments in China, in particular the startup
of our Verbund site with our partner Sinopec in Nanjing," said
Hambrecht. In Nanjing, the two partners have invested $2.9 billion in
their joint venture BASF-YPC. With its steam cracker and nine
downstream plants, the new site has an annual capacity of 1.7 million
metric tons of high-quality chemicals.
BASF also announced that it had recently put the world's largest
PolyTHF(R) complex into full production at the integrated site in
Caojing near Shanghai. PolyTHF(R) is an important component in the
production of spandex fibers for the textile industry.
The new plants are an important step in achieving the company's
strategic goals in Asia: By 2010, BASF aims to generate 20 percent of
sales and earnings in its chemical activities in Asia Pacific.
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 EUR 37 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 www.basf.com.
The following information is also available on the Internet at the
addresses shown:
Interim report (from 7:30 a.m. CEST)
www.basf.de/interimreport (English)
www.basf.de/zwischenbericht (German)
Press release (from 7:30 a.m. CEST)
www.basf.de/pressrelease (English)
www.basf.de/pressemitteilungen (German)
Live-Transmission (from 10:00 a.m. CEST)
www.basf.de/pcon (English)
www.basf.de/pk (German)
Speech Dr. Jurgen Hambrecht/Dr. Kurt Bock - print version
(from 10:00 a.m. CEST)
www.basf.de/pressconference (English)
www.basf.de/pressekonferenz (German)
Photos (from 7:30 a.m. CEST)
www.basf.de/photos (English)
www.basf.de/fotos (German)
Live transmission Analyst Conference (from 3:00 p.m. CEST)
www.basf.de/share (English)
www.basf.de/aktie (German)
Information about BASF shares
www.basf.de/share (English)
www.basf.de/aktie (German)
Forward-looking statements
This release contains forward-looking statements under the U.S.
Private Securities Litigation Reform Act of 1995. These statements are
based on current expectations, estimates and projections of BASF
management and currently available information. They are not
guarantees of future performance, involve certain risks and
uncertainties that are difficult to predict and are based upon
assumptions as to future events that may not prove to be accurate.
Many factors could cause the actual results, performance or
achievements of BASF to be materially different from those that may be
expressed or implied by such statements. Such factors include those
discussed in BASF's Form 20-F filed with the Securities and Exchange
Commission. We do not assume any obligation to update the
forward-looking statements contained in this release.
Strong second quarter, improved outlook for full year
Second-Quarter Results
April - June 2005, published on August 3, 2005
Overview BASF Group
2nd 1st
Quarter Half
Million EUR Change Change
2005 2004 in % 2005 2004 in %
Sales 10,581 9,314 13.6 20,664 18,365 12.5
Income from operations
before interest, taxes
amortization and
depreciation (EBITDA) 2,149 1,815 18.4 4,168 3,429 21.6
Income from operations
(EBIT) before special
items 1,657 1,266 30.9 3,220 2,441 31.9
Income from operations
(EBIT) 1,587 1,250 27.0 3,086 2,325 32.7
Financial result (82) 12 . (37) (28) (32.1)
Income before taxes and
minority interests 1,505 1,262 19.3 3,049 2,297 32.7
Net income 778 714 9.0 1,639 1,234 32.8
Earnings per share
(EUR) 1.48 1.30 13.8 3.08 2.23 38.1
EBIT before special
items in percent of
sales 15.7 13.6 - 15.6 13.3 -
Cash provided by
operating activities 977 1,218 (19.8) 2,081 2,206 (5.7)
Additions to fixed
assets* 850 466 82.4 1,212 984 23.2
Excluding acquisitions 482 466 3.4 844 923 (8.6)
Amortization and
depreciation* 562 565 (0.5) 1,082 1,104 (2.0)
Segment assets (end of
period)** 28,631 27,521 4.0 - - -
Personnel costs 1,393 1,338 4.1 2,670 2,631 1.5
Number of employees
(end of period) 80,946 85,124 (4.9) - - -
* Tangible and intangible fixed assets (including acquisitions)
** Tangible and intangible fixed assets, inventories and
business-related receivables
Starting from January 1, 2005, the accounting and reporting of the
BASF Group is performed according to International Financial Reporting
Standards (IFRS). The previous year's figures have been restated in
accordance with IFRS.
Contents
1 BASF Group Business Review and Outlook
4 Chemicals
5 Plastics
6 Performance Products
7 Agricultural Products & Nutrition
8 Oil & Gas
9 Regions
10 Consolidated Statements of Income
11 Consolidated Balance Sheets
12 Consolidated Statements of Cash Flows
13 Consolidated Statements of Equity
14 Segment Reporting
BASF shares 2nd Quarter 2005 1st Half 2005
Share price (end of
period)* (EUR) 55.00 -
High* (EUR) 56.82 58.30
Low* (EUR) 50.11 50.11
Average daily trade
(million shares)* 2.84 2.73
BASF share performance** +4.0% +7.3%
DAX 30 performance** +5.5% +7.8%
EURO STOXX 50 performance** +6.0% +10.0%
Market capitalization (end
of period) (billion EUR) 29.2 -
Number of shares (end of
period) (million
shares)*** 531.7 -
XETRA trading
With dividends reinvested
Including bought back shares intended for cancellation
From our innovation centers
Combined protection against sunburn
Effective filters protect skin from harmful UV radiation
The requirements placed on sunscreens are high: They should
reliably provide the longest possible protection against UV radiation,
be resistant to water and sweat, and have a pleasant conditioning
effect. These demands are met by effective products containing
organically and inorganically based UV-filtering substances. Often
several of these chemical UV filters are combined in one sunscreen
product to filter out the complete wavelength spectrum of UV-A and
UV-B radiation from sunlight.
"Sun care products are being used with increasing frequency and
with a definite trend toward higher sun protection factors," says Dr.
Valerie Andre of BASF's Strategic Marketing Cosmetics. "Even with an
extremely high sun protection factor, our UV filters are suitable for
producing sun cosmetics with a delicately creamy and transparent
texture which remain effective even after prolonged sunbathing." BASF
is the world's largest manufacturer of UV filters and supplies highly
effective organic and inorganic UV-A and UV-B filters for many
prominent sunscreen manufacturers.
Inorganic UV filters are produced from microfine particles of
titanium dioxide or zinc oxide which reflect the incident UV light
like tiny mirrors. They cover the longer-wave UV-A but also the
shorter-wave UV-B ranges and are used especially in sunscreens with
very high sun protection factors. Organic UV filters, on the other
hand, absorb the radiation; in other words, they process the absorbed
energy within themselves.
Organic UV filters are usually effective in the UV-B range. BASF's
cosmetic experts, however, are currently engaged in introducing a
novel organic absorber for UV-A radiation. This innovative product
will shortly be making its debut on the market under the tradename
Uvinul(R) A Plus. The new active ingredient can be superbly combined
with other organic and inorganic filters to provide optimal
protection. Not only is it especially effective in screening out UV-A
radiation, it is also completely photo-stable, thereby assuring a long
duration of action. In addition, it can be combined with other
cosmetic raw materials without any problems.
Even with a high sun protection factor, BASF's UV filters are
suitable for producing sun cosmetics with a delicately creamy and
transparent texture which remain effective even after prolonged
sunbathing.
From our innovation centers
Firefighting with superabsorbents
Phos-Chek(R) Focstop from Astaris can also be applied from the
air, for example from helicopters.
Environmentally friendly water-based gel offers firefighters
numerous advantages In the hot, dry summer months, forest and bush
fires can threaten both property and lives. Firefighters have a
dangerous job, and so innovative extinguishing and fire protection
agents that make their work easier are extremely welcome. As the
world's leading manufacturer of superabsorbents, BASF has therefore
developed a firefighting gel based on these functional polymers. The
gel is distributed worldwide by Astaris LLC -- a leading provider of
chemical firefighting solutions -- under the brand name Phos-Chek(R)
Focstop. The product has been approved for use by the U.S. Department
of Agriculture's Forest Service agency under the brand name
Phos-Chek(R) AquaGel in the United States.
The new firefighting gel can applied either as a protective cover
against fire over homes, gardens or other terrain, or used directly
for firefighting. Applied via suitable hoses or aerially from
helicopters or planes, the gel can effectively protect neighboring
homes or villages from forest or bush fires.
"Phos-Chek(R) Focstop is a new, high-performance, environmentally
friendly product that is available to firefighters with immediate
effect," says Dr. Martin Beck, from BASF's acrylic monomers and
superabsorbents business unit. "We are expanding the areas of
application for superabsorbents beyond the field of hygiene, and are
thus strengthing our specialties portfolio." Unlike conventional
firefighting gels, Phos-Chek(R) Focstop does not leave an oily residue
on surfaces after use. Consequently, residue cleanup after the fire is
extinguished is faster, easier and less expensive. Another advantage
is that it is supplied in powder form, and therefore has a longer
storage life and requires less warehouse space than ready-mixed gels.
Users simply add water to the powder, and the gel is immediately ready
to use.
Technical superabsorbents are crosslinked polyacrylates and are
marketed worldwide by BASF as a direct derivative of acrylic acid.
Thanks to their capacity to safely absorb large volumes of liquid,
superbsorbents are widely used in the hygiene industry. The advantage
for firefighting is that just a small volume of superabsorbents forms
a gel when mixed with water. This aqueous gel offers effective and
longer lasting protection because it does not seep away as quickly as
water. Instead it adheres well to the surfaces in need of protection
and can easily be washed off later.
BASF Group Business Review and Outlook
-- Value over volume concept successful: - Sales +14% - EBIT
before special items +31%
-- Earnings jump in North America
-- Successful start of Nanjing Verbund site in China
-- Improved outlook for full year 2005: Sales and EBIT before
special items up on 2004
Sales
Compared with the same quarter of 2004, we increased sales in the
second quarter of 2005 by 14% to EUR 10.6 billion. Sales increased 16%
if divestitures and currency effects are not taken into account. The
sales growth was due primarily to higher sales prices in our chemical
businesses as well as the higher price of oil in the Oil & Gas
segment. Sales volumes increased 3% compared with the previous year's
high level.
Factors influencing sales in comparison with previous year
% of sales 2nd Quarter 1st Half
Volumes 3 2
Prices 13 14
Currencies (1) (2)
Acquisitions/divestitures (1) (1)
Total 14 13
In addition to higher sales prices, the increase in sales in the
Chemicals segment was due to higher volumes of petrochemicals, as well
as the effect of the acquisition of Merck's electronic chemicals
business.
The Plastics segment also benefited from significantly higher
sales prices compared with the same period of 2004, but sales volumes
declined for some products.
Sales by segment, 2nd quarter 2005
Million EUR
Chemicals 2005 2,007 15%
2004 1,748
Plastics 2005 2,924 16%
2004 2,522
Performance 2005 2,098 3%
Products 2004 2,029
Agricultural 2005 1,465 (4)%
Products
& Nutrition 2004 1,527
Oil & Gas 2005 1,650 51%
2004 1,090
The Performance Products segment more than made up for the loss in
sales resulting from the divestiture of the printing systems business
in the fourth quarter of 2004. Sales in the Agricultural Products &
Nutrition segment declined due to the drastic fall in prices for
lysine in the Fine Chemicals divisions, and due to currency effects.
The sales growth in the Oil & Gas segment was due to higher oil prices
and an increase in sales volumes.
Special items 1st 2nd 3rd 4th
Quarter Quarter Quarter Quarter
Million EUR 2005 2004 2005 2004 2005 2004 2005 2004
Special items in
Income from
operations (64) (100) (70) (16) (96) 175
Financial result - (21) - (1) (16) (580)
Income before taxes
and
minority interests (64) (121) (70) (17) (112) (405)
Earnings Compared with the same quarter of 2004, we increased
income from operations (EBIT) before special items by 31 % to EUR
1,657 million. All segments contributed to the improvement in
earnings.
In the Chemicals segment, higher raw material costs were
largely passed on to the market. Capacity utilization was particularly
high in the Petrochemicals division.
In the Plastics segment, higher margins for poly-urethanes led to
significantly higher earnings. The Performance Products segment posted
higher earnings, in particular thanks to the strong performance of the
Functional Polymers division.
In the Agricultural Products division, we achieved higher earnings due
to our higher value portfolio and improved cost structures. Earnings
in the Fine Chemicals division remained unsatisfactory.
The exploration and production business sector in the Oil & Gas
segment benefited from high oil prices and increased production. In
the second quarter, EBIT after special items rose 27% to EUR 1.587
million.
Special items were primarily related to the planned closure of part of
the Chemicals segment's site in Feluy, Belgium, and to restructuring
measures in the Fine Chemicals division's vitamin C business.
The change in the financial result was due to a decline in the
market values of financial derivatives used to hedge interest rate and
currency risks.
EBIT before special items, 2nd quarter 2005
Million EUR
Chemicals 2005 415 22%
2004 340
Plastics 2005 274 52%
2004 180
Performance 2005 272 17%
Products 2004 233
Agricultural Products 2005 302 11 %
& Nutrition 2004 273
Oil & Gas 2005 579 71%
2004 339
Income before taxes and minority interests increased by 19% to EUR
1,505 million.
The tax rate increased to 46% compared with 41 % in the second
quarter of 2004. Income taxes contain taxes for oil production that
are noncompensable with German corporate income tax. Due to the higher
earnings contribution from the exploration and production of oil,
these taxes increased from EUR 128 million to EUR 267 million. Net of
this effect, the tax rate was at the same level as in the second
quarter of 2004 at approximately 34%.
Net income rose 9% to EUR 778 million. Earnings per share were EUR
1.48 compared with EUR 1.30 in the same period of the previous year.
Outlook
We continue to expect global chemical production to grow by
approximately 3% in 2005. The United States and Asia will likely
continue to drive growth, whereas economic growth in Europe is
expected to decline.
For 2005, we are forecasting an average price for Brent crude of
$50 per barrel and an average dollar exchange rate of $1.25 per euro.
Demand for our products remains strong. However, the extremely high
and volatile oil price may cause a further increase in raw material
prices and restrict economic growth.
We intend to rigorously pursue our strategy of value-based growth
and continue with our restructuring measures. For the full year 2005,
we are expecting significantly higher sales and an increase in EBIT
before special items compared with the previous year's strong level
(IFRS).
Significant events
In the first half of 2005, BASF YPC Co. Ltd., a 50-50 joint
venture between BASF and SINOPEC, successfully started up a steam
cracker and nine downstream plants as planned at the new Verbund site
in Nanjing, China.
On May 5, 2005, BASF and Shell Chemicals announced that they would
sell their 50-50 joint venture Basell, one of the world's leading
manufacturers of poly-olefins, to Nell Acquisition S.a.r.l.,
Luxembourg, an affiliate of New York-based Access Industries. The deal
closed on August 1, 2005. The sales price totaled EUR 4.4 billion
including debt.
On June 25, 2005, BASF announced the acquisition of 100% of the
shares in the Swiss fine chemicals company Orgamol S.A. The
acquisition significantly strengthens BASF's pharma contract
manufacturing business.
The Ludwigshafen Site Project was successfully completed, reducing
costs at the Ludwigshafen production site by EUR 480 million per year.
On June 28, 2005, the U.S. Court of Appeals for the District of
Columbia reached a decision in the Empagran case, in which BASF was
one of the defendents. The plaintiffs' action was dismissed.
On May 19, 2005, BASF Aktiengesellschaft issued a euro benchmark
bond with a nominal volume of EUR 1.4 billion, a maturity of seven
years and a coupon of 3.375% per year. The proceeds were used to
refinance a bond that matured in July.
Chemicals
-- Sales growth due to higher sales prices
-- Rise in earnings; good capacity utilization
-- Successful startup of new plants in China
Overview Chemicals 2nd Quarter 1st Half
Million EUR Change Change
2005 2004 in % 2005 2004 in %
Sales 2,007 1,748 15 3,829 3,330 15
Thereof Inorganics 268 211 27 475 412 15
Petrochemicals 1,227 1,047 17 2,363 1,966 20
Intermediates 512 490 4 991 952 4
EBITDA 477 459 4 1,021 813 26
EBIT before special items 415 340 22 841 591 42
EBIT before special items in
percent of sales 20.7 19.5 - 22.0 17.7 -
EBIT 345 335 3 771 569 36
Quarterly sales exceeded EUR 2 billion for the first time despite
negative currency effects (volumes 3%, portfolio 2%, prices 12%,
currencies -2%). Capacity utilization was high, and earnings increased
significantly. In Nanjing, China, all of the Chemical segment's eight
production plants successfully started operations. Special items were
incurred in association with the planned closure of plants belonging
to the Petrochemicals and Intermediates divisions at the site in
Feluy, Belgium.
Inorganics
Sales increased significantly due to the contribution
from the electronic chemicals business acquired from Merck in April
2005 and due to price increases for products in the existing
portfolio. Higher raw material costs were passed on to the market,
especially in the adhesives and impregnating resins business. In
addition, persistently strong demand for our catalysts and an improved
cost structure for the production of basic chemicals led to an
increase in earnings. The integration of the electronic chemicals
business acquired from Merck is proceeding as planned and is expected
to be completed by the end of the year.
Petrochemicals
A further increase in sales volumes together with price increases
resulted in strong sales growth, which eased somewhat in the second
half of the quarter. Capacity utilization remained very high, and the
division's earnings again exceeded the level posted in the strong
second quarter of the previous year. In Nanjing, China, we
successfully started operations at a steam cracker with an annual
capacity of 600,000 metric tons of ethylene as well as at additional
world-scale plants, for example for oxo alcohols and ethylene oxide.
We are planning to cease the uncompetitive production of plasticizers
at the site in Feluy, Belgium. BASF is focusing on the plasticizers
Palatinol(R) N, Palatinol(R) 10P and the innovative specialty Hexamoll
DINCH(R).
Intermediates
The Intermediates division is also rigorously implementing the
"value over volume" concept. Sales increased slightly despite a
decline in sales volumes. Earnings were significantly higher as a
result of fixed cost reductions. In Nanjing, China, plants for
propionic and formic acids and for methylamine and dimethylformamide
started operations as planned.
Plastics
-- Strong sales growth despite decline in volumes
-- Rigorous restructuring in North America
-- Further earnings improvement in Polyurethanes division
Overview Plastics 2nd Quarter 1st Half
Million EUR Change Change
2005 2004 in % 2005 2004 in %
Sales 2,924 2,522 16 5,724 4,829 19
Thereof Styrenics 1,128 1,019 11 2,264 1,937 17
Performance
Polymers 732 649 13 1,421 1,262 13
Polyurethanes 1,064 854 25 2,039 1,630 25
EBITDA 400 292 37 780 566 38
EBIT before special items 274 180 52 543 335 62
EBIT before special items in
percent of sales 9.4 7.1 - 9.5 6.9 -
EBIT 280 171 64 548 325 69
Compared with the same quarter of 2004, sales increased
significantly as a result of higher sales prices (volumes -5%, prices
22%, currencies -1%). Sales volumes declined in the Styrenics
division. The Polyurethanes division was primarily responsible for the
strong increase in earnings.
Styrenics
Sales were higher than in the same period of 2004 due exclusively
to high sales prices. Sales growth was especially pronounced in North
and South America. Overall, however, it was not possible to compensate
for the high and volatile price of the division's most important raw
material, benzene. Earnings therefore declined. The sale of our
polystyrene site in Joliet, Illinois, is a key element of our business
optimization in North America.
Performance Polymers
The price increases implemented at the start of the year led to an
increase in sales. Despite high and volatile prices for important raw
materials such as benzene, earnings improved slightly, in particular
as a result of stable sales volumes for engineering plastics. In May,
we started consolidating nylon 6 production in the United States by
expanding capacities in Freeport, Texas. In July, Bosch awarded its
"Supplier Award 2005" to BASF as the best supplier of engineering
plastics.
Polyurethanes
The strong increase in sales was almost completely due to higher
prices, and was seen in all regions and product groups. Earnings rose
significantly as a result of our consistent value orientation. The
capacity of the MDI plant in Antwerp was extended from 360,000 to
450,000 metric tons per year, and the expanded plant started
operations successfully in May. In July, we further strengthened our
global market position by acquiring Huntsman's TDI business.
Performance Products
-- Further increase in sales and earnings
-- Profitable growth, especially in Functional Polymers division
-- Strong growth in Asia
Overview Performance 2nd Quarter 1st Half
Products
Million EUR Change Change
2005 2004 in % 2005 2004 in %
Sales 2,098 2,029 3 4,006 3,958 1
Thereof Performance
Chemicals 734 825 (11) 1,428 1,621 (12)
Coatings 555 520 7 1,027 1,025 0
Functional
Polymers 809 684 18 1,551 1,312 18
EBITDA 366 321 14 670 615 9
EBIT before special items 272 233 17 497 443 12
EBIT before special items in
percent of sales 13.0 11.5 - 12.4 11.2 -
EBIT 282 230 23 506 433 17
Sales increased, in particular due to price increases (volumes 1%,
portfolio -6%, prices 9%, currencies -1 %). The significant
improvement in earnings was primarily due to higher margins for
functional polymers. Earnings contain special gains from the
divestiture of the printing systems business, which has now been
completed.
Performance Chemicals
The decline in sales compared with the same period of 2004 was due
to the sale of the printing systems business. Earnings from ongoing
business were higher than in the second quarter of 2004, in particular
due to the strong performance of performance chemicals for detergents
and formulators and for the automotive and oil industry. In Caojing,
China, the cornerstone for a new plant to produce coatings raw
materials for the Asian market was laid in June. We have added the
newly developed polymer Sokalan(R) HP 70 to our portfolio, whose
innovative properties enable the very efficient use of cleaning agents
in domestic applications.
Coatings
Strong business with automotive refinish coatings in Europe and
North America and the acquisition of the remaining shares in the joint
venture BASF NOF Coatings in Japan in April led to an increase in
sales. We further expanded our business with decorative paints in
South America. Earnings declined slightly due to higher raw material
costs and a reduction in the contribution from the automotive (OEM)
coatings business.
Functional Polymers
Price increases resulted in significantly higher sales and
earnings in almost all business areas. The earnings growth was
particularly strong in North America. Our new production plants for
acrylic acid and acrylates in Nanjing, China, successfully started
operations. Together with a U.S. customer we have developed and
launched a fire-fighting gel, Phos-Chek(R) AquaGel, based on technical
superabsorbents.
Agricultural Products & Nutrition
-- Further increase in earnings in Agricultural Products
-- Earnings in Fine Chemicals impacted by significant decline in
lysine prices
-- Strategic expansion of pharma contract manufacturing business
Overview Agricultural 2nd Quarter 1st Half
Products
Million EUR Change Change
2005 2004 in % 2005 2004 in %
Sales 1,043 1,071 (3) 2,002 2,054 (3)
EBITDA 351 306 15 683 608 12
EBIT before special items 295 239 23 571 493 16
EBIT before special items in
percent of sales 28.3 22.3 - 28.5 24.0 -
EBIT 291 235 24 575 469 23
As a result of negative currency effects and persistently dry
weather in parts of South America and southern Europe, sales declined
slightly overall (volumes 1%, prices -1%, currencies -3%). Some
factors, however, had a positive effect on sales: the continued
successful launch of innovative products such as boscalid and F
500(R), as well as significantly higher demand for fungicides in North
America, where our customers prepared themselves to combat the
possible spread of Asian soybean rust. Earnings increased
significantly despite negative currency effects, primarily as a result
of our higher value product portfolio and improved cost structures.
Overview Fine Chemicals 2nd Quarter
Million EUR 2005 2004 Change in %
Sales 422 456 (7)
EBITDA 12 69 (83)
EBIT before special items 7 34 (79)
EBIT before special items in
percent of sales 1.7 7.5 -
EBIT (19) 33.
Overview Fine Chemicals 1st Half
Million EUR 2005 2004 Change in %
Sales 817 914 (11)
EBITDA 62 148 (58)
EBIT before special items 27 80 (66)
EBIT before special items in
percent of sales 3.3 8.8 -
EBIT 1 79 (99)
The decline in sales was largely due to the fall in the price of
lysine, the division's highest volume product. The weaker dollar also
negatively impacted sales. We increased sales volumes, however
(volumes 4%, portfolio -3%, prices -7%, currencies -1%). Higher sales
were posted for organic acids for animal nutrition, fat-soluble
vitamins, and aroma chemicals. Earnings fell primarily due to the
decline in the margin for lysine. Special items were incurred for the
restructuring of the vitamin C business. We expanded our pharma
contract manufacturing business by acquiring the Swiss fine chemicals
company Orgamol.
Oil & Gas
-- Sales growth due to significantly higher crude oil prices
-- Higher oil and gas production
-- Natural gas trading expanded further
Overview Oil & Gas 2nd Quarter 1st Half
Million EUR Change Change
2005 2004 in % 2005 2004 in %
Sales 1,650 1,090 51 3,490 2,484 40
Thereof Exploration and
production 862 584 48 1,555 1,111 40
Natural gas
trading 788 506 56 1,935 1,373 41
EBITDA 686 443 55 1,276 872 46
Thereof Exploration and
production 609 351 74 1,068 655 63
Natural gas
trading 77 92 (16) 208 217 (4)
EBIT before special items 579 339 71 1,063 682 56
Thereof Exploration and
production 533 278 92 919 527 74
Natural gas
trading 46 61 (25) 144 155 (7)
EBIT before special items in
percent of sales 35.1 31.1 - 30.5 27.5 -
Exploration and production 61.8 47.6 - 59.1 47.4 -
Natural gas trading 5.8 12.1 - 7.4 11.3 -
EBIT 579 346 67 1,063 689 54
Thereof Exploration and
production 533 285 87 919 534 72
Natural gas
trading 46 61 (25) 144 155 (7)
Sales (volumes 17%, prices/currencies 34%) and earnings increased
significantly due to an average price for Brent crude of more than $50
in the second quarter and due to higher production volumes.
In the exploration and production business sector, the increase in
sales and earnings was primarily due to the fact that the average
price of Brent crude was $16 (EUR 11) higher than in the same quarter
of 2004. Oil production was increased in Germany and Libya, and gas
production was raised in Libya and the Netherlands.
We put the largest offshore gas field in Argentina into production
off the coast of Tierra del Fuego, together with our consortium
partners.
In April, we signed a memorandum of understanding with our partner
Gazprom to further strengthen our successful cooperation. Together, we
aim to develop natural gas fields in western Siberia and jointly
participate in the construction of a pipeline through the Baltic Sea.
At the same time, Gazprom will increase its stake in the WIN-GAS joint
venture.
We significantly increased sales volumes in the natural gas
trading business sector. Margins and earnings were below the previous
year's level because the terms of supply contracts mean that sales
prices could not be adjusted immediately to reflect higher prices. In
May, BASF and its partners announced its plans to convert the Haidach
gas reservoir in Austria into a gas storage facility.
Regions
-- Highest sales growth in North America and Asia
-- Successful restructuring in North America
-- Startup of Nanjing Verbund site in China
Overview Regions Sales (location of Sales (location of
company) customer)
Million EUR Change Change
2005 2004 in % 2005 2004 in %
2nd Quarter
Europe 6,178 5,559 11 5,829 5,180 13
Thereof Germany 4,141 3,638 14 2,053 1,838 12
North America (NAFTA) 2,585 2,204 17 2,588 2,240 16
Asia Pacific 1,451 1,168 24 1,560 1,302 20
South America, Africa,
Middle East 367 383 (4) 604 592 2
10,581 9,314 14 10,581 9,314 14
1st Half
Europe 12,280 11,193 10 11,680 10,567 11
Thereof Germany 8,451 7,531 12 4,254 3,787 12
North America (NAFTA) 4,850 4,122 18 4,831 4,149 16
Asia Pacific 2,750 2,267 21 2,926 2,494 17
South America, Africa,
Middle East 784 783 0 1,227 1,155 6
20,664 18,365 13 20,664 18,365 13
Overview Regions EBIT before special items
Million EUR Change
2005 2004 in %
2nd Quarter
Europe 1,199 938 28
Thereof Germany 772 651 19
North America (NAFTA) 351 213 65
Asia Pacific 95 71 34
South America, Africa, Middle East 12 44 (73)
1,657 1,266 31
1st Half
Europe 2,333 1,850 26
Thereof Germany 1,514 1,305 16
North America (NAFTA) 622 303 105
Asia Pacific 182 166 10
South America, Africa, Middle East 83 122 (32)
3,220 2,441 32
Second-quarter sales by location of company in Europe increased
11%. EBIT before special items rose EUR 261 million to EUR 1,199
million. The Chemicals and Plastics segments posted higher sales and
earnings due to higher margins and a reduction in fixed costs; the Oil
& Gas segment benefited from higher oil prices.
In North America, sales by location of company improved by 23% in
dollar terms. EBIT before special items increased by EUR 138 million
to EUR 351 million thanks to the contribution of all segments. The
Agricultural Products division recorded the largest increase in
earnings as a result of stronger demand for fungicides and reduced
costs. We fully achieved cost savings of $250 million one year ahead
of schedule by restructuring our service platform, sites and product
portfolio in North America. Further cost-reduction measures will be
defined by the end of this year.
In Asia Pacific, companies increased sales in local currencies by
25%. EBIT before special items rose EUR 24 million to EUR 95 million.
At our Verbund site in Nanjing, China, all production plants started
operations successfully in June. This brings us an important step
closer toward our goal of generating 20% of our sales and earnings in
our chemical activities in Asia Pacific by 2010, with 70% coming from
local production.
In South America, Africa, Middle East, sales by location of
company declined 9% in local currency terms. EBIT before special items
declined by EUR 32 million to EUR 12 million. In the Agricultural
Products division, sales and earnings were below the strong level in
the same period of 2004. Demand for fungicides was significantly lower
due to persistently dry weather. Earnings increased, however, in our
chemical businesses.
Consolidated Statements of Income
Million EUR 2nd Quarter 1st Half
Change Change
2005 2004 in % 2005 2004 in %
Sales 10,581 9,314 13.6 20,664 18,365 12.5
Cost of sales 7,083 6,221 13.9 13,928 12,361 12.7
Gross profit on sales 3,498 3,093 13.1 6,736 6,004 12.2
Selling expenses 1,085 1,146 (5.3) 2,089 2,257 (7.4)
General and
administrative expenses 193 177 9.0 357 348 2.6
Research and development
expenses 292 278 5.0 575 541 6.3
Other operating income 56 110 (49.1) 182 207 (12.1)
Other operating expenses 397 352 12.8 811 740 9.6
Income from operations 1,587 1,250 27.0 3,086 2,325 32.7
(Expenses)/income from
financial assets 42 45 (6.7) 113 58 94.8
Interest result (51) (72) 29.2 (91) (109) 16.5
Other financial results (73) 39 (59) 23.
Financial result (82) 12 (37) (28) (32.1)
Income before taxes and
minority interests 1,505 1,262 19.3 3,049 2,297 32.7
Income taxes 697 514 35.6 1,319 997 32.3
Net income before
minority interests 808 748 8.0 1,730 1,300 33.1
Minority interests 30 34 (11.8) 91 66 37.9
Net income 778 714 9.0 1,639 1,234 32.8
Earnings per share (EUR) 1.48 1.30 13.8 3.08 2.23 38.1
Number of shares, in
million (weighted) 527 551 (4.4) 532 553 (3.8)
The interim financial statements have not been audited. From
January 1, 2005, the financial statements were prepared in accordance
with International Financial Reporting Standards (IFRS); the previous
year's figures have been restated. The transition in accounting and
valuation methods and the reconciliation to IFRS for the 2004 figures
are described on page 15 ff of the Interim Report for the first
quarter of 2005.
As of the second quarter of 2005, we record the current expenses
or income from combined interest rate and currency swaps in the
interest result rather than under other financial results. The
previous year's figures have been restated to allow comparison.
Consolidated Balance Sheets
Assets June June Change Dec. Change
Million EUR 30, 30, in % 31, in %
2005 2004 2004
Long-term assets
Intangible assets 3,773 3,939 (4.2) 3,610 4.5
Property, plant and equipment 13,709 13,741 (0.2) 13,007 5.4
Investments accounted for using
the equity method 1,168 1,682 (30.6) 1,092 7.0
Other financial assets 974 960 1.5 941 3.5
Deferred taxes 1,139 1,176 (3.1) 1,067 6.7
Other long-term assets 689 606 13.7 598 15.2
21,452 22,104 (2.9) 20,315 5.6
Short-term assets
Inventories 5,331 4,361 22.2 4,645 14.8
Accounts receivable, trade 6,815 6,329 7.7 5,861 16.3
Other receivables and
miscellaneous short-term assets 1,869 2,069 (9.7) 2,073 (9.8)
Liquid funds 3,156 824 283.0 2,291 37.8
17,171 13,583 26.4 14,870 15.5
Total assets 38,623 35,687 8.2 35,185 9.8
Stockholders' equity and June June Change Dec. Change
liabilities Million EUR 30, 30, in % 31, in %
2005 2004 2004
Stockholders' equity
Subscribed capital 1,342 1,407 (4.6) 1,384 (3.0)
Capital surplus 3,066 3,001 2.2 3,022 1.5
Retained earnings 12,018 11,847 1.4 12,154 (1.1)
Other comprehensive income 416 110 278.2 (166).
Minority interests 435 369 17.9 347 25.4
17,277 16,734 3.2 16,741 3.2
Long-term liabilities
Provisions for pensions and
similar obligations 3,926 3,949 (0.6) 3,866 1.6
Other provisions 2,463 2,349 4.9 2,385 3.3
Deferred taxes 972 681 42.7 817 19.0
Financial indebtedness 3,496 3,124 11.9 1,845 89.5
Other liabilities 1,014 1,034 (1.9) 1,043 (2.8)
11,871 11,137 6.6 9,956 19.2
Short-term liabilities
Accounts payable, trade 2,369 2,502 (5.3) 2,372 (0.1)
Provisions 2,759 2,440 13.1 2,508 10.0
Tax liabilities 1,078 836 28.9 644 67.4
Financial indebtedness 1,510 376 301.6 1,453 3.9
Other liabilities 1,759 1,662 5.8 1,511 16.4
9,475 7,816 21.2 8,488 11.6
Total stockholders' equity and
liabilities 38,623 35,687 8.2 35,185 9.8
Consolidated Statements of Cash Flows
Million EUR 1st Half
2005 2004
Net income 1,639 1,234
Depreciation and amortization of long-term assets 1,082 1,116
Changes in net working capital (573) (75)
Miscellaneous items (67) (69)
Cash provided by operating activities 2,081 2,206
Payments related to tangible and intangible fixed
assets (875) (960)
Acquisitions/divestitures (51) (66)
Financial investments and other items 13 23
Cash used in investing activities (913) (1,003)
Proceeds from capital increases/(decreases) (858) (340)
Changes in financial indebtedness 1,494 26
Dividends (942) (805)
Cash used in financing activities (306) (1,119)
Net changes in cash and cash equivalents 862 84
Cash and cash equivalents as of beginning of year
and other changes 2,126 540
Cash and cash equivalents 2,988 624
Marketable securities 168 200
Liquid funds 3,156 824
The previous year's figures were restated due to the transition to
IFRS. There were no significant changes.
Cash provided by operating activities declined by EUR 125 million,
but remained high at EUR 2,081 million. Additional financing for net
working capital was necessary due to the expansion of our business.
Cash used in investing activities led to a cash outflow of EUR 913
million compared with EUR 1,003 million in the first half of 2004. At
EUR 875 million, payments related to tangible and intangible fixed
assets were below the previous year's level and were significantly
lower than the level of depreciation and amortization on fixed assets.
Acquisitions/divestitures refer in particular to the acquisition of
the global electronic chemicals business from Merck, Germany, and the
sale of the polystyrene business in North America.
In cash used in financing activities, dividend payments and
further share buybacks led to a cash outflow. In the first half of
2005, we bought back 16.4 million shares for EUR 867 million or an
average of EUR 52.88 per share. Of this amount, EUR 0.6 billion was
associated with the new EUR 1.5 billion buyback program. The emission
of a euro benchmark bond resulted in a cash inflow of EUR 1.4 billion
in the second quarter, which led to an increase in liquid funds as of
June 30, 2005. Of this amount, EUR 1.25 billion was used to refinance
the bond that matured in July 2005.
Liquid funds increased by EUR 865 million since the end of 2004 to
EUR 3,156 million, and at EUR 5,006 million, financial indebtedness
was EUR 1,708 million higher than on December 31, 2004. Net debt
therefore increased by EUR 843 million to EUR 1,850 million compared
with the end of 2004. The equity ratio was 45%.
Consolidated Statements of Equity
January - June 2005 Number of Subscribed
Million EUR subscribed capital
shares
outstanding
As of January 1, 2005 540,440,410 1,384
Share buyback and cancellation of shares
including own shares intended to be
cancelled (16,402,229) (42)
Capital injection by minority interests - -
Dividends paid - -
Net income - -
Change in other comprehensive ncome* -
Change in scope of consolidation and - -
other changes
As of June 30, 2005 524,038,181 1,342
January - June 2004 Number of Subscribed
Million EUR subscribed capital
shares
outstanding
As of January 1, 2004 556,643,410 1,425
Share buyback and cancellation of shares
including own shares intended to be
cancelled (7,170,000) (18)
Capital injection by minority interests - -
Dividends paid - -
Net income - -
Change in other comprehensive ncome* - -
Change in scope of consolidation and - -
other changes
As of June 30, 2004 549,473,410 1,407
January - June 2005 Capital Retained Other
Million EUR surplus earnings comprehensive
income
As of January 1, 2005 3,022 12,154 (166)
Share buyback and cancellation of
shares including own shares
intended to be cancelled 44 (869)
Capital injection by minority
interests - - -
Dividends paid - (904) -
Net income - 1,639 -
Change in other comprehensive -
ncome* - 582
Change in scope of consolidation - -
and other changes (2)
As of June 30, 2005 3,066 12,018 416
January - June 2004 Capital Retained Other
Million EUR surplus earnings comprehensive
income
As of January 1, 2004 2,983 11,673 28
Share buyback and cancellation of
shares including own shares
intended to be cancelled 18 (300)
Capital injection by minority
interests - - -
Dividends paid - (774) -
Net income - 1,234 -
Change in other comprehensive - -
ncome* 82
Change in scope of consolidation - -
and other changes 14
As of June 30, 2004 3,001 11,847 110
January - June 2005 Minority Stockholders'
Million EUR interests equity
As of January 1, 2005 347 16,741
Share buyback and
cancellation of shares
including own shares intended
to be cancelled (867)
Capital injection by minority
interests 10 10
Dividends paid (38) (942)
Net income 91 1,730
Change in other comprehensive
ncome* 23 605
Change in scope of
consolidation and other
changes 2 -
As of June 30, 2005 435 17,277
January - June 2004 Minority Stockholders'
Million EUR interests equity
As of January 1, 2004 403 16,512
Share buyback and
cancellation of shares
including own shares intended
to be cancelled (300)
Capital injection by minority
interests (41) (41)
Dividends paid (31) (805)
Net income 66 1,300
Change in other comprehensive
ncome* (60) 22
Change in scope of
consolidation and other
changes 32 46
As of June 30, 2004 369 16,734
* Contains income-neutral changes in equity (in particular,
translation adjustments)
Segment Reporting
Segments Sales EBITDA
Million EUR
2nd Quarter 2005 2004 in % 2005 2004 in %
Chemicals 2,007 1,748 14.8 477 459 3.9
Plastics 2,924 2,522 15.9 400 292 37.0
Performance Products 2,098 2,029 3.4 366 321 14.0
Agricultural Products &
Nutrition 1,465 1,527 (4.1) 363 375 (3.2)
Agricultural Products 1,043 1,071 (2.6) 351 306 14.7
Fine Chemicals 422 456 (7.5) 12 69 (82.6)
Oil & Gas 1,650 1,090 51.4 686 443 54.9
Other* 437 398 9.8 (143) (75) (90.7)
10,581 9,314 13.6 2,149 1,25 18.4
2nd Quarter Research and Assets**
development expenses
Chemicals 28 25 12.0 6,026 5,373 12.2
Plastics 35 33 6.1 6,591 6,216 6.0
Performance Products 47 55 (14.5) 4,938 5,090 (3.0)
Agricultural Products &
Nutrition 92 85 8.2 6,866 7,116 (3.5)
Agricultural Products 75 63 19.0 5,540 5,693 (2.7)
Fine Chemicals 17 22 (22.7) 1,326 1,423 (6.8)
Oil & Gas 36 37 (2.7) 4,210 3,726 13.0
Other* 54 43 25.6 9,992 8,166 22.4
292 278 5.0 38,623 35,687 8.2
Segments Income from operations Income from
Million EUR before special items operations (EBIT)
2nd Quarter 2005 2004 in % 2005 2004 in %
Chemicals 415 340 22.1 345 335 3.0
Plastics 274 180 52.2 280 171 63.7
Performance Products 272 233 16.7 282 230 22.6
Agricultural Products &
Nutrition 302 273 10.6 272 268 1.5
Agricultural Products 295 239 23.4 291 235 23.8
Fine Chemicals 7 34 (79.4) (19) 33.
Oil & Gas 579 339 70.8 579 346 67.3
Other* (185) (99) (86.9) (171) (100) (71.0)
1,657 1,266 30.9 1,587 1,250 27.0
2nd Quarter Additions to fixed Amortization and
assets*** depreciation***
Chemicals 369 143 158.0 132 124 6.5
Plastics 120 110 9.1 120 121 (0.8)
Performance Products 134 68 97.1 84 91 (7.7)
Agricultural Products &
Nutrition 33 56 (41.1) 91 107 (15.0)
Agricultural Products 14 17 (17.6) 60 71 (15.5)
Fine Chemicals 19 39 (51.3) 31 36 (13.9)
Oil & Gas 156 58 169.0 107 97 10.3
Other* 38 31 22.6 28 25 12.0
850 466 82.4 562 565 (0.5)
Segments Sales EBITDA
Million EUR
1st Half 2005 2004 in % 2005 2004 in %
Chemicals 3,829 3,330 15.0 1,021 813 25.6
Plastics 5,724 4,829 18.5 780 566 37.8
Performance Products 4,006 3,958 1.2 670 615 8.9
Agricultural Products &
Nutrition 2,819 2,968 (5.0) 745 756 (1.5)
Agricultural Products 2,002 2,054 (2.5) 683 608 12.3
Fine Chemicals 817 914 (10.6) 62 148 (58.1)
Oil & Gas 3,490 2,484 40.5 1,276 872 46.3
Other* 796 796 0.0 (324) (193) (67.9)
20,664 18,365 12.5 4,168 3,429 21.6
1st Half Research and Assets**
development expenses
Chemicals 55 52 5.8 6,026 5,373 12.2
Plastics 69 64 7.8 6,591 6,216 6.0
Performance Products 97 110 (11.8) 4,938 5,090 (3.0)
Agricultural Products &
Nutrition 178 167 6.6 6,866 7,116 (3.5)
Agricultural Products 143 124 15.3 5,540 5,693 (2.7)
Fine Chemicals 35 43 (18.6) 1,326 1,423 (6.8)
Oil & Gas 70 62 12.9 4,210 3,726 13.0
Other* 106 86 23.3 9,992 8,166 22.4
575 541 6.3 38,623 35,687 8,62
Segments Income from Income from operations
Million EUR operations before (EBIT)
special items
1st Half 2005 2004 in % 2005 2004 in %
Chemicals 841 591 42.3 771 569 35.5
Plastics 543 335 62.1 548 325 68.6
Performance Products 497 443 12.2 506 433 16.9
Agricultural Products &
Nutrition 598 573 4.4 576 548 5.1
Agricultural Products 571 493 15.8 575 469 22.6
Fine Chemicals 27 80 (66.3) 1 79 (98.7)
Oil & Gas 1,063 682 55.9 1,063 689 54.3
Other* (322) (183) (76.0) (378) (239) (58.2)
3,220 2,441 31.9 3,086 2,325 32.7
1st Half Additions to fixed Amortization and
assets*** depreciation***
Chemicals 457 318 43.7 250 244 2.5
Plastics 202 212 (4.7) 232 241 (3.7)
Performance Products 188 134 40.3 164 182 (9.9)
Agricultural Products &
Nutrition 64 111 (42.3) 169 208 (18.8)
Agricultural Products 26 36 (27.8) 108 139 (22.3)
Fine Chemicals 38 75 (49.3) 61 69 (11.6)
Oil & Gas 250 144 73.6 213 183 16.4
Other* 51 65 (21.5) 54 46 17.4
1,212 984 23.2 1,082 1,104 (2.0)
* "Other" includes the fertilizers business and other businesses as
well as expenses, income and assets not allocated to the segments.
This item also includes foreign currency results from financial
indebtedness that are not allocated to the segments as well as from
currency positions that are macro-hedged (EUR (94) million in the
second quarter (previous year EUR 12 million) and EUR (139) million in
the first half (previous year EUR (2) million)).
** The assets of "Other" includes the assets of the fertilizers
business and other businesses as well as assets that are not allocated
to the segments (financial assets, liquid funds, financial
receivables, deferred taxes; 2nd quarter 2005: EUR 8,221 million, 2nd
quarter 2004: EUR 6,590 million).
*** Tangible and intangible fixed assets
Forward-looking statements
This report contains forward-looking statements under the U.S.
Private Securities Litigation Reform Act of 1995. These statements are
based on current expectations, estimates and projections of BASF
management and currently available information. They are not
guarantees of future performance, involve certain risks and
uncertainties that are difficult to predict and are based upon
assumptions as to future events that may not prove to be accurate.
Many factors could cause the actual results, performance or
achievements of BASF to be materially different from those that may be
expressed or implied by such statements. Such factors include those
discussed in BASF's Form 20-F filed with the Securities and Exchange
Commission. (The Annual Report on Form 20-F is available on the
Internet at www.basf.com.) We do not assume any obligation to update
the forward-looking statements contained in this report.
Important Dates
-- November 2, 2005
Interim Report Third Quarter 2005
-- February 22, 2006
Financial Results 2005
-- May 4, 2006
Annual Meeting, Mannheim
Interim Report First Quarter 2006
-- August 2, 2006
Interim Report Second Quarter 2006
Corporate Media Relations:
Michael Grabicki
Phone: +49 621 60-99938
Fax: +49 621 60-92693
E-mail: michael.grabicki@basf-ag.de
Investor Relations:
Magdalena Moll
Phone: +49 621 60-48230
Fax: +49 621 60-22500
E-mail: investorrelations@basf-ag.de
General inquiries:
Phone: +49 621 60-0
Fax: +49 621 60-42525
E-mail: info.service@basf-ag.de
Internet: www.basf.com
BASF Aktiengesellschaft
67056 Ludwigshafen
Germany
Publisher:
BASF Aktiengesellschaft
Communications BASF Group
67056 Ludwigshafen
Germany
You can find HTML versions of this and other publications from
BASF on our homepage at www.basf.com.
You can also order reports:
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CONTACT: BASF
Corporate Media Relations:
Michael Grabicki, +49 621 60 99938
Fax: +49 621 60 92693
michael.grabicki@basf-ag.de
or
Investor Relations:
Magdalena Moll, +49 621 60 48230
Fax: +49 621 60 22500
investorrelations@basf-ag.de
or
General inquiries:
Phone: +49 621 60 0
Fax: +49 621 60 42525
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www.basf.com
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Current Report to be signed on its behalf by the
undersigned, thereunto duly authorized.
BASF Aktiengesellschaft
Date: August 3, 2005 By: /s/ Elisabeth Schick
------------------------------------
Name: Elisabeth Schick
Title: Director Site Communications
Ludwigshafen and Europe
By: /s/ Christian Schubert
------------------------------------
Name: Christian Schubert
Title: Director Corporate
Communications BASF Group