“The coming months therefore offer both opportunities and risks. Their aim is to capitalize on the opportunities and to assess the risks correctly. They want to complete the major capital expenditure projects on schedule and to continue with their successful measures for restructuring and achieving additional cost savings. At the same time, they are working hard to further expand the 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: “They are expecting significantly higher sales and an increase in EBIT before special items compared with their 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.
“They increased sales prices in their 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 the operating divisions also increased sales volumes slightly,” said Bock.