BASF increases 2013 sales, cautiously optimistic for 2014

March 01, 2014 | 16:05

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Germany’s leading chemical company BASF increased sales and earnings in 2013, and expects slight rise in income from operations for this year.

The group reported its sales in the fourth quarter of 2013 at €18.1 billion, slightly above the same period of the previous year, with volumes increased in all segments. Income from operations (EBIT) before special items improved in all operating segments in the fourth quarter and increased by €223 million to €1.5 billion.

For the entire 2013, its sales rose by just under 3 per cent to reach €74 billion. EBIT before special items in 2013 rose by €543 million to €7.2 billion.

BASF said at the annual shareholders’ meeting this May 2, the Board of Executive Directors and the Supervisory Board would propose a dividend of €2.70 per share. This is an increase of €0.1 compared with the previous year. Based on the 2013 year-end share price of €77.49, BASF shares offer a dividend yield of 3.5 per cent.

As for its outlook for full year 2014, BASF chairman Dr. Kurt Bock, said from Germany, “We do not expect strong tailwinds this year either. Nevertheless, we are cautiously optimistic with regards to global economic development. The world economy is expected to grow slightly faster in 2014 than in 2013, despite continuing volatility.”

For the global chemical industry, the company anticipates growth rates comparable with the previous year’s level and forecasts somewhat higher growth in key customer industries such as the transportation, consumer goods and electronics industries. This will likely have a positive effect on BASF’s business.

By By Tuong Thuy

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