BASF Increases 2013 Sales and Earnings
OREANDA-NEWS. BASF increased sales and earnings in 2013 compared with the previous year. "2013 was again a demanding year, with a lot of headwind for our industry. Nevertheless, we achieved our goal: We sold more, worked more closely together with our customers and enhanced our portfolio," said Dr. Kurt Bock, Chairman of the Board of Executive Directors of BASF SE at the Annual Press Conference in Ludwigshafen.
Sales of BASF Group in the fourth quarter of 2013 were EUR 18.1 billion, slightly above the same period of the previous year. Volumes increased in all segments. Sales prices were slightly lower overall in the fourth quarter; negative currency effects lowered sales in all divisions. Acquisitions contributed to sales growth, particularly in the Oil & Gas and Agricultural Solutions segments. Income from operations (EBIT) before special items improved in all operating segments in the fourth quarter and increased by EUR 223 million to EUR 1.5 billion. EBIT rose by EUR 584 million to EUR 1.6 billion. This included special income of EUR 429 million from the reclassification of GASCADE Gastransport GmbH. This joint venture had previously been fully consolidated. Since December 31, 2013, GASCADE has been accounted for using the equity method in the BASF Group financial statements due to a change in the voting rights in their supervisory board.
For the full year, sales rose by just under 3% to reach EUR 74.0 billion. A considerable, mainly volumes-driven sales increase in the Oil & Gas and Agricultural Solutions segments was largely responsible for this development. Sales slightly declined in the chemicals business, which includes the Chemicals, Performance Products and Functional Materials & Solutions segments, despite higher sales volumes. This was mainly on account of negative currency effects. EBIT before special items in 2013 rose by EUR 543 million to EUR 7.2 billion. In addition to the successful business with crop protection products and a higher contribution from the Functional Materials & Solutions segment, this increase was also due in large part to the earnings improvement in Other.
Net income amounted to EUR 4.8 billion, slightly above the previous year's level. Earnings per share rose from EUR 5.25 to EUR 5.27. Adjusted earnings per share amounted to EUR 5.37, EUR 0.27 under the previous year.
"At EUR 7.9 billion, operating cash flow reached a record level," said Dr. Hans-Ulrich Engel, Chief Financial Officer of BASF.
At the Annual Shareholders' Meeting on May 2, the Board of Executive Directors and the Supervisory Board will propose a dividend of EUR 2.70 per share. This is an increase of EUR 0.10 compared with the previous year. Based on the 2013 year-end share price of EUR 77.49, BASF shares again offer a high dividend yield of 3.5%.
For 2014, BASF assumes the following economic conditions (previous year figures in parentheses):
* Global economic growth: +2.8% (+2.3%)
* Growth in global chemical production (without pharmaceuticals): +4.4% (+4.6%)
* An average euro/dollar exchange rate of USD 1.30 per euro
(USD 1.33 per euro)
* An average oil price (Brent) of \\$110 per barrel (USD 109 per barrel).
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