BASF's chairman expects an average euro/dollar exchange rate of $1.35 per euro in 2007. Due to the rise in oil prices, the company has increased its assumption for the average price of Brent crude in 2007 to $65 per barrel.
Risks are seen as lying in the renewed significant rise in the price of oil, the weak U.S. dollar, and tension in conflict areas around the world.
“In our outlook for 2007 we confirm our optimistic expectations: We are confident that we will grow faster than the chemical market. In 2007, we expect significantly higher sales than in 2006.
Scheduled plant turnarounds, in particular in the Petrochemicals division, are likely to reduce earnings by €150 million in the second half of 2007. In addition, we plan to further increase spending on research and development. We nevertheless expect full-year EBIT before special items to at least match the previous year's record level,” said Hambrecht.
BASF's Chief Financial Officer, Dr. Kurt Bock, commented on the positive development of cash provided by operating activities: “Cash provided by operating activities developed very positively in the second quarter. The cumulative value for the first half was in excess of €2.7 billion compared with €2.2 billion in the first half of 2006.”
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