BASF – The Chemical Company – also increased its sales and earnings in the third quarter of 2007 and is thus heading for a record year again. BASF's Chief Financial Officer Dr. Kurt Bock pointed out to analysts and journalists that all segments contributed to the increase in sales. In particular, the businesses acquired last year performed strongly.
The demand for BASF products and innovative system solutions remains at a high level. BASF was able once again to increase volumes in comparison to the very strong quarter in the previous year, and slightly raise sales prices.
Overall, BASF increased sales by 5 percent to nearly €14 billion in the third quarter of 2007. Income from operations (EBIT) before special items rose by 6 percent to €1.7 billion.
Cumulative sales in the first nine months of 2007 rose by 13 percent to €43.3 billion. EBIT before special items increased by 9 percent to €5.9 billion.
Earnings per share more than doubled in the third quarter due to higher income from operations as well as a lower tax rate as part of the German Corporate Tax Reform 2008. This has resulted in non-recurring, non-cash income being included in the third quarter due to the revaluation of deferred taxes.
Positive outlook for full-year 2007:
BASF is now expecting for 2007 the following conditions: • Global economic growth of 3.5 percent • An average oil price (Brent) of around $70/barrel • An average dollar/euro exchange rate of $1.35 per euro
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