BASF ended year with a strong plastics performance

BASF has reported encouraging financial results. Fourth-quarter sales rose 9% to €19.6bn (£16.9bn) while earnings before interest and taxation (Ebit) climbed 18% €1.8bn (£1.6bn).

The chemicals giant said revenues and earnings would rise in 2013 thanks to a recovery in demand and efficiency measures.

Sales for 2012 were €78.7bn (£67.8bn), up 7% year-on-year, with earnings were €8.9bn (£7.7bn), up 5% on 2011. “We aim to grow again in 2013 and exceed the 2012 levels in sales and Ebit bit before special items,” said Kurt Bock, BASF chairman.

“Innovations are the basis for future profitable growth and thus lie at the core of our competitiveness,” he added. BASF would therefore increase its research and development spending in 2013, after investing €1.7bn (£1.5bn) in the past year – around 9% more than in 2011.

BASF’s sale of plastics increased – up 4% to €11.4bn (£9.8bn) – in part due to continuing strong demand from the automotive industry, particularly in North America and Asia, reported the company. Ebit before special items rose substantially due to a significant improvement in earnings in polyurethanes.

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