BASF Confirms Its Confident Outlook for 2002.Business Editors LUDWIGSHAFEN Lud·wigs·ha·fen A city of southwest Germany on the Rhine River opposite Mannheim. Founded as a fortress in the early 17th century, it is now a leading center of the country's chemical industry. Population: 162,000. , Germany--(BUSINESS WIRE)--Aug. 8, 2002 BASF BASF Bar Association of San Francisco (since 1872; San Francisco, California) BASF Badische Anilin und Soda Fabrik (German chemical products company) BASF Builders Association of South Florida (NYSE NYSE See: New York Stock Exchange :BF): Higher Earnings From Stable Sales in the Second Quarter Improved Earnings in the Chemicals, Plastics & Fibers and Performance Products segments Outlook 2002: EBIT EBIT See: Earnings Before Interest and Taxes EBIT See earnings before interest and taxes (EBIT). Before Special Items Higher Than in 2001 "We are not idly waiting for an upturn, but are acting now. The structural measures that we were early in implementing are showing their effects. Our cost-reduction program is proceeding according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. plan. Our strategy is the right one." This was Dr. Jurgen Jurgen regaining his lost youth, he has strange “adventures with a host of mythical persons. [Am. Lit.: Jurgen in Magill I, 464] See : Fantasy Jurgen F. Strube's summary of BASF's second-quarter results. At EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 8.4 billion, sales were maintained at the previous year's level. EBIT (income from operations) before special items of EUR822 million was almost 10 percent higher than in the second quarter of 2001 EBIT before special items was also higher than in the first quarter of 2002. Compared with the same period in 2001, BASF also regained ground in terms of cumulative sales, which amounted to EUR16.6 billion in the period from January January: see month. to June June: see month. 2002. When sales from the pharmaceuticals business are excluded this is only 3.7 percent less than in the strong first half of 2001. In the first six months of this year, EBIT before special items was EUR1.6 billion, or 4.3 percent less than in the same period in 2001. Earnings per share were EUR0.86 in the second quarter of 2002 compared with EUR0.02 in the same period of 2001. This reflects the much lower level of special items in the second quarter of 2002. In terms of performance, BASF shares were number 2 in Germany's DAX index and in the EURO STOXX STOXX A series of market indexes that are representative of the European and global markets. These indexes cover a wide range of market segments including the broad market, blue chips, individual sectors and global indexes. index in the first six months of 2002. Strube interpreted this as a sign of the confidence placed in BASF to succeed in the face of difficult conditions and despite the persistently weak economic climate. "In 2002 overall, we aim to achieve higher EBIT before special items than in 2001 on the basis of a roughly similar level of sales," said Strube, summarizing his expectations for 2002. Factors of uncertainty continued to be global security and its effects on oil prices, continuing stock market turbulence turbulence, state of violent or agitated behavior in a fluid. Turbulent behavior is characteristic of systems of large numbers of particles, and its unpredictability and randomness has long thwarted attempts to fully understand it, even with such powerful tools as and consumer confidence. The moderate upturn in business that BASF started experiencing in March continued in the second quarter and was supported by good volume demand in particular. The strongest improvement in earnings was seen in the Chemicals, Plastics & Fibers and Performance Products segments. The Agricultural Products division was particularly negatively affected by poor weather conditions in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . Earnings in the Oil & Gas segment were down on 2001 due to a lower oil price. Trend reversed in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). , NAFTA NAFTAin full North American Free Trade Agreement Trade pact signed by Canada, the U.S., and Mexico in 1992, which took effect in 1994. Inspired by the success of the European Community in reducing trade barriers among its members, NAFTA created the world's and Asia; South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. under pressure In Europe, the NAFTA region and Asia, BASF is once again seeing an upward trend in its business. In Europe, BASF posted total sales in the second quarter of EUR4.4 billion, or 1 percent less than in the same quarter of 2001. By comparison, sales declined by 16 percent in the first quarter of this year. EBIT before special items in Europe was EUR679 million in the second quarter, or 15 percent lower than in the same period in 2001. The oil and gas business contributed 39 percent to earnings. Business picked up in the NAFTA region. Sales were slightly higher in the second quarter than in the first quarter and were 6 percent up on the second quarter of 2001. EBIT before special items was EUR77 million in the second quarter. BASF is confident that it can achieve a turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. in North America for the full year. In South America, sales declined by 26 percent in the second quarter. The difficult situation experienced in the first quarter therefore remains unchanged. Earnings also declined further and the company posted a loss of EUR29 million in this region in the second quarter. In Asia Pacific, BASF performed better than in the second quarter of 2001, with sales up 11 percent on last year. In particular, this increase in sales stemmed stemmed adj. 1. Having the stems removed. 2. Provided with a stem or a specific type of stem. Often used in combination: stemmed goblets; long-stemmed roses. from the Plastics & Fibers segment and the Petrochemicals division. Earnings were EUR105 million higher compared with the same period in 2001. Competitive position strengthened through resolute res·o·lute adj. Firm or determined; unwavering. [Middle English, dissolved, dissolute, from Latin resol strategy implementation Strube stressed that BASF would adhere to adhere to verb 1. follow, keep, maintain, respect, observe, be true, fulfil, obey, heed, keep to, abide by, be loyal, mind, be constant, be faithful 2. its long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. strategy of adding value through growth and innovation. In doing so, the company will expand profitable business areas, strengthen its long-term competitiveness, optimize optimize - optimisation its Verbund Verbund is the largest producer and transporter of electricity in Austria, and one of the largest in Europe. The company produced in 2006 around 28.1 billion kWh mainly from hydropower plants (85%), thermal plants (10%) and eco power plants (5%). structures and invest in growth markets. In addition, BASF will adapt its structures and processes to make them more flexible and closer to the market. Efforts to permanently reduce fixed costs fixed costs, n.pl the costs that do not change to meet fluctuations in enrollment or in use of services (e.g., salaries, rent, business license fees, and depreciation). are proving successful, said Strube. In the previous year, BASF already made cost savings of EUR250 million. In the first six months of 2002 further plants and sites were closed in the course of restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). measures. These include a vitamin E vitamin E or tocopherol Fat-soluble organic compound found principally in certain plant oils and leaves of green vegetables. Vitamin E acts as an antioxidant in body tissues and may prolong life by slowing oxidative destruction of membranes. plant in Wyandotte, Michigan Wyandotte is a city in Wayne County in the U.S. state of Michigan. The population was 28,006 at the 2000 census. The Population percent change from 1990 to 2000 was a -9.0% showing a slightly decreasing population. , and a Styrodur plant in Antwerp Antwerp, city, Belgium Antwerp, Du. Antwerpen, Fr. Anvers, city (1991 pop. 467,518), capital of Antwerp prov., N Belgium, on the Scheldt River. , Belgium Belgium (bĕl`jəm), Du. België, Fr. La Belgique, officially Kingdom of Belgium, constitutional kingdom (2005 est. pop. 10,364,000), 11,781 sq mi (30,513 sq km), NW Europe. . In Europe, BASF is restructuring its plasticizers plasticizers mostly triaryl phosphates, such as tricresyl, triphenyl phosphates, which are poisonous. See also triorthocresyl phosphate. production. Plants in Tarragona Tarragona (tär-rəgō`nə), city (1990 pop. 112,360), capital of Tarragona prov., NE Spain, in Catalonia, on the Mediterranean Sea at the mouth of the Francolí River. , Spain Spain, Span. España (āspä`nyä), officially Kingdom of Spain, constitutional monarchy (2005 est. pop. 40,341,000), 194,884 sq mi (504,750 sq km), including the Balearic and Canary islands, SW Europe. , will be shut down and the company will supply its markets from world-scale plants in Feluy, Belgium, and Ludwigshafen, Germany Germany (jûr`mənē), Ger. Deutschland, officially Federal Republic of Germany, republic (2005 est. pop. 82,431,000), 137,699 sq mi (356,733 sq km). . On this basis, BASF intends achieving its goal of reducing costs by EUR1 billion by the end of 2003. BASF is the world's leading chemical company. It aims to increase and sustain its corporate value through growth and innovation. BASF offers its customers a range of high-performance Adj. 1. high-performance - modified to give superior performance; "a high-performance car" superior - of high or superior quality or performance; "superior wisdom derived from experience"; "superior math students" products, including chemicals, plastics, coatings systems, dispersions, agricultural products, fine chemicals as well as crude oil and natural gas. BASF's distinctive approach to integration, known in German as "Verbund," is its strength. It enables the company to achieve cost leadership and gives it a decisive competitive advantage in the long term. BASF acts in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with the principles of Sustainable Development Sustainable development is a socio-ecological process characterized by the fulfilment of human needs while maintaining the quality of the natural environment indefinitely. The linkage between environment and development was globally recognized in 1980, when the International Union . In 2001, BASF had sales of EUR32.5 billion (circa circa prep. Abbr. ca In approximately; about. $29 billion) and over 90,000 employees worldwide. BASF shares are traded on the stock exchanges in Frankfurt (BAS BAS abbr. 1. Bachelor of Agricultural Science 2. Bachelor of Applied Science ), London London, city, Canada London, city (1991 pop. 303,165), SE Ont., Canada, on the Thames River. The site was chosen in 1792 by Governor Simcoe to be the capital of Upper Canada, but York was made capital instead. London was settled in 1826. (BFA BFA abbr. Bachelor of Fine Arts BFA abbr BFA, B.F.A Bachelor of Fine Arts; first degree in Fine Arts. ), New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of (BF), Paris (BA) and Zurich (BAS). Further information on BASF is available on the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at www.basf.com. The following information will be available on the Internet from today (August 8, 2002): Interim Report (from 7:30 a.m. CEST) www.basf.de/Interimreport Press release (from 7:30 a.m. CEST) www.basf.de/Pressrelease Speech by Dr. Jurgen F. Strube - live transmission (from 10:00 a.m. CEST) www.basf.de/pcon Speech by Dr. Jurgen F. Strube - printed version (from 10:00 a.m. CEST) www.basf.de/Pressconference You can download photos of BASF from the Internet at: www.basf.de/pressphotos Klaus Peter Lobbe, member of BASF's Board of Executive Directors, will report on business performance and outlook in the NAFTA region at 4:00 p.m. CEST. Visit http://richmedia.conferencing.com/basf for more information If you have technical questions regarding the use of our Internet pages, please contact Jurgen Schwerdtfeger on +49 621 60-99400. Second-Quarter Results August 8, 2002 EBIT before special items in the second quarter up almost 10 % on the previous year Improved earnings in Chemicals, Plastics & Fibers and Performance Products; difficult environment for Agricultural Products Outlook for 2002: Increase in EBIT before special items expected
BASF Group
2nd Quarter Change 1st Quarter Change
Million euro 2002 2001 in % 2002 2001 in %
Sales 8,379 8,329 0.6 16,618 17,618 (5.7)
Income from operations
before special items 822 751 9.5 1,640 1,713 (4.3)
Income from
operations (EBIT) 817 304 168.8 1,631 1,093 49.2
Income from operations
before depreciation and
amortization (EBITDA) 1,411 1,016 38.9 2,843 2,415 17.7
Extraordinary income - - - - 6,010 -
Income before taxes
and minority interests 825 201 310.4 1,663 6,842 (75.7)
Net income 502 11 . 1,058 6,204 (82.9)
Earnings per share
- ordinary (euro) 0.86 0.02 . 1.81 0.55 229.1
- extraordinary (euro) - - - - 9.61 -
Sales and earnings Sales: Sales in the second quarter increased slightly by 0.6 % to euro 8,379 million compared with the same period in 2001. This was primarily due to a significant increase in sales volumes. The level of selling prices, however, continued to remain significantly below last years level. Currency effects resulted in particular from the devaluation devaluation, decreasing the value of one nation's currency relative to gold or the currencies of other nations. It is usually undertaken as a means of correcting a deficit in the balance of payments. of the U.S. dollar, South American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of currencies and the Japanese yen “Yen” redirects here. For the other use, see Yen (disambiguation). “JPY” redirects here. For the Australian singer with the same moniker, see John Paul Young. against the euro. Overall, BASF regained ground in the first six months compared with the same period in 2001: Excluding sales of euro 364 million from the pharmaceuticals business in the first quarter of 2001, the decline in sales in the first half of 2002 was only 3.7 %. Factors influencing sales in comparison with previous year in % 2nd Quarter 1st Half Volumes +9.1 +4.6 Prices (8.2) (8.5) Currency (1.8) (0.6) Acquisitions/divestitures(a) +1.5 (1.2) Total +0.6 (5.7) (a) Including discontinued operations Earnings: Second-quarter income from operations before special items climbed by 9.5 % due to improved earnings in the Chemicals, Plastics & Fibers and Performance Products segments despite a renewed re·new v. re·newed, re·new·ing, re·news v.tr. 1. To make new or as if new again; restore: renewed the antique chair. 2. increase in the price of raw materials. A positive contribution was made by the restructuring and cost- reduction measures introduced in 2001. As a result of the strong second quarter, earnings in the first half of 2002 declined by only 4.3 % compared with the same period in 2001. Earnings were negatively affected above all by lower average prices for crude oil and increased competition in the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. market for agricultural products. Compared with the same periods in 2001, income from operations after special items was significantly higher in the second quarter and first half of 2002 due to a much lower level of special items. The financial result in the second quarter was positive. Due in particular to the earnings posted by Basell, income from financial assets Financial assets Claims on real assets. increased significantly to euro 77 million following a loss of euro 27 million in the previous year. The interest result of minus euro 69 million was at the same level as in the previous year. Second-quarter income before taxes and minority interests net of special items increased 28 %. The average tax rate was 36 % in the second quarter and 33 % in the first six months. Net income of euro 502 million in the second quarter and euro 1,058 million in the first half of 2002 even exceeded the level in the successful year 2000.
Special items
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Million euro 2002 2001 2002 2001 2002 2001 2002 2001
Special items
- in income
from operations (4) (173) (5) (447) (14) (442)
- in financial
result 114 - - - (5) (68)
Total 110 (173) (5) (447) (19) (510)
Outlook For 2002 as a whole, we anticipate sales at the previous years level and improved income from operations before special items. In view of the level of incoming Incoming is a 3-D shooter developed by Rage Software and published by Interplay. The PC version was released in late 1998, and the Dreamcast version, a launch title for the console, was released in 1998 in Japan and in 1999 in the rest of the world. orders, we currently expect a slight increase in sales and a significant increase in income from operations before special items in the third quarter of the year compared with the same period of 2001. Improved margins as a result of the sales price increases made in some business areas at the end of the second quarter will contribute toward this.
Segments
Sales Income from Income from
operations before operations
special items
Change Change Change
Million euro 2002 2001(a) in % 2002 2001(a) in % 2002 2001(a) in%
2nd Quarter
Chemicals 1,398 1,163 20.2 161 121 33.1 161 104 54.8
Plastics &
Fibers 2,243 2,159 3.9 211 70 201.4 211 62 240.3
Performance
Products 2,077 2,112 (1.7) 210 127 65.4 210 (54) .
Agricultural
Products &
Nutrition 1,495 1,523 (1.8) 130 165 (21.2) 127 151 (15.9)
Oil & Gas 879 981 (10.4) 292 378 (22.8) 292 378 (22.8)
Other(b) 287 391 (26.6) (182) (110) (65.5) (184) (337) 45.4
thereof
exploratory/
biotechnology
research costs - - - 50 44 13.6 50 44 13.6
8,379 8,329 0.6 822 751 9.5 817 304 168.8
1st Half
Chemicals 2,601 2,285 13.8 272 230 18.3 270 205 31.7
Plastics &
Fibers 4,218 4,313 (2.2) 309 163 89.6 306 137 123.4
Performance
Products 4,060 4,199 (3.3) 325 252 29.0 329 53 520.8
Agricultural
Products &
Nutrition 3,037 3,611 (15.9) 364 464 (21.6) 358 375 (4.5)
Oil & Gas 2,105 2,424 (13.2) 576 754 (23.6) 576 754 (23.6)
Other(b) 597 786 (24.0) (206) (150) (37.3) (208) (431) 51.7
thereof
exploratory/
biotechnology
research costs - - - 99 111 (10.8) 99 111 (10.8)
16,618 17,618 (5.7) 1,640 1,713 (4.3) 1,631 1,093 49.2
a) Previous year's figures adjusted to take account of organizational
changes.
b) Provisions for structural measures not yet allocated were included
in the second quarter of 2001. In addition, the figures contain
earnings/ losses (-95, in previous year -33) from foreign currency
financial indebtedness which is not allocated to the segments as
well as currency positions which are macro-hedged. Their positive
market values will only be realized at maturity in the course of
the year.
Chemicals Sales in the Chemicals segment rose 20.2 % in the second quarter to euro 1,398 million (volumes +28.3 %, prices/currency -11.7 %). The new steam cracker (1) A person who breaks into a computer system without authorization, whose purpose is to do damage (destroy files, steal credit card numbers, plant viruses, etc.). Because a cracker uses low-level hacker skills to do cracking, the terms "cracker" and "hacker" have become in Port Arthur, Texas Port Arthur is a city in Jefferson County within the Beaumont-Port Arthur metropolitan area and is situated in southeast Texas. As of the 2000 U.S. Census, the city had a total population of 57,755. , which started up at the end of 2001 contributed to the large increase in volumes. Second-quarter income from operations before special items was euro 161 million, euro 40 million or 33 % higher compared with the same period of the previous year. Sales in the Inorganics division in the second quarter did not quite reach the same level as in 2001. Earnings were improved despite the negative impact of scheduled shutdowns and inspection of plants in Ludwigshafen and Antwerp. Earnings in catalysts developed positively. In the Petrochemicals division, good volume demand in the second quarter led to high steam cracker capacity utilization Capacity Utilization measures the rate at which a firm makes use of their capital productive capacities, such as factories and machinery. Capacity Utilization generally rises when the economy is healthy and falls when demand softens. and to an improvement in margins. Sales and earnings therefore increased. In the Intermediates division, sales in the second quarter were at the previous years level. Earnings declined due to increases in the cost of some raw materials.
Sales by division
2nd Quarter 1st Half
Change Change
Million euro 2002 2001(a) in % 2002 2001(a) in %
Inorganics 182 186 (2.2) 351 377 (6.9)
Petrochemicals 766 525 45.9 1,376 1,017 35.3
Intermediates 450 452 (0.4) 874 891 (1.9)
a) Previous years figures adjusted to take account of organizational
changes.
Plastics & Fibers In the Plastics & Fibers segment, second-quarter sales increased by 3.9 % to euro 2,243 million (volumes +9.6 %, prices/currency -6.5 %). Sales in the first half of 2002 were 2.2 % lower than in the same period of 2001. Income from operations before special items in the second quarter was euro 211 million, compared with euro 70 million in the same period of the previous year. High capacity utilization rates Capacity utilization rate The percentage of the economy's total plant and equipment that is currently in production. Usually, a decrease in this percentage signals an economic slowdown, while an increase signals economic expansion. in all divisions and good demand were the main reason for the increase. Sales in the Styrenics division increased 5 % and income from operations improved compared with the very weak second quarter of the previous year. This was mainly due to price adjustments to reflect severe increases in the cost of raw materials, in particular for polymers, and the cost-reduction measures introduced in 2001. In the Performance Polymers division, higher sales volumes and price increases - in particular for fiber intermediates - led to higher second- quarter sales. A reduction in fixed costs as a result of restructuring measures and good capacity utilization improved earnings. Business continued to develop positively in the Polyurethanes polyurethanes (pŏl'ēy r`əthānz), group of plastics that may be either thermosetting or thermoplastic. Polyurethane can be made into both flexible and rigid foams. division
in the second quarter. In particular, sales were boosted due to higher
sales volumes for basic materials in Asia and the nafta region. The
higher utilization of capacities established in recent years resulted in
an increase in earnings.
Sales by division
2nd Quarter 1st Half
Change Change
Million euro 2002 2001(a) in % 2002 2001(a) in %
Styrenics 888 846 5.0 1,630 1,703 (4.3)
Performance Polymers 628 612 2.6 1,169 1,223 (4.4)
Polyurethanes 727 701 3.7 1,419 1,387 2.3
a) Previous years figures adjusted to take account of organizational
changes.
Performance Products Second-quarter sales in this segment did not quite reach the previous years level and declined 1.7% to euro 2,077 million (volumes +5.1 %, prices/ currency -7.3 %). In the second quarter, income from operations before special items climbed 65 % to euro 210 million. Among other things, this was due to improved volumes in most business areas as well as cost reductions following restructuring measures. Second-quarter sales in the Performance Chemicals division were at the same level as in 2001. Earnings improved due to positive business development in almost all business areas and the improvement of our cost structure. In the Coatings division, sales declined by 4.5 % in the second quarter. Reasons for this decline included lower sales in South America as a result of the weakness of local currencies. Nevertheless, second-quarter earnings in 2002 were considerably higher than in the same period of 2001. There was increased demand in the Functional Polymers Functional polymers are polymers with advanced optic and/or electronic properties. Advantages of functional polymers are low cost, ease of processing and a range of attractive mechanical characteristics for functional organic molecules. division in the second quarter. Earnings were considerably higher than in the weak second quarter of 2001.
Sales by division
2nd Quarter 1st Half
Change Change
Million euro 2002 2001(a) in % 2002 2001(a) in %
Performance Chemicals 856 857 (0.1) 1,704 1,719 (0.9)
Coatings 567 594 (4.5) 1,098 1,167 (5.9)
Functional Polymers 654 661 (1.1) 1,258 1,313 (4.2)
a) Previous years figures adjusted to take account of organizational
changes.
Agricultural Products & Nutrition
Sales Income from Income from
operations operations
before
special items
Change Change Change
Million euro 2002 2001 in % 2002 2001 in % 2002 2001 in %
2nd Quarter
Agricultural
Products 1,003 1,038 (3.4) 108 133 (18.8) 108 126 (14.3)
Fine Chemicals 492 485 1.4 22 32 (31.3) 19 25 (24.0)
Pharmaceuticals(a) - - - - - - - - -
1,495 1,523 (1.8) 130 165 (21.2) 127 151 (15.9)
1st Half
Agricultural
Products 2,041 2,270 (10.1) 321 418 (23.2) 321 335 (4.2)
Fine Chemicals 996 977 1.9 43 45 (4.4) 37 10 270.0
Pharmaceuticals* - 364 - - 1 - - 30 -
3,037 3,611 (15.9) 364 464 (21.6) 358 375 (4.5)
a) The pharmaceuticals business was sold to Abbott Laboratories
on March 2, 2001.
Agricultural Products: Sales in the second quarter were below the previous years level. The main reasons for this were unfavorable weather conditions in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and a resulting increase in competitive pressure in the herbicides business. Our business was also negatively impacted by the weak economic situation in South America. We increased sales in Europe and Asia. Growth in the area of fungicides This page aims to list well-known chemical compounds, to stimulate the creation of Wikipedia articles. This list is not necessarily complete or up to date – if you see an article that should be here but isn't (or one that shouldn't be here but is), please update the page , in particular the F 500 range, as well as the realization of additional synergies were unable to offset a decline in income from operations before special items, which decreased by 18.8 % in the second quarter and by 23.2 % in the first six months compared with the same periods of 2001. Fine Chemicals: The slight increase in demand continued. Volume growth was seen in all business areas with the exception of cosmetics cosmetics, preparations externally applied to change or enhance the beauty of skin, hair, nails, lips, and eyes. The use of body paint for ornamental and religious purposes has been common among primitive peoples from prehistoric times (see body-marking). raw materials. Due to weaker prices for vitamins Vitamins Definition Vitamins are organic components in food that are needed in very small amounts for growth and for maintaining good health. The vitamins include vitamin D, vitamin E, vitamin A, and vitamin K, or the fat-soluble vitamins, and folate , sales increased only 1.4 % in the second quarter and close to 2 % in the first half of 2001 compared to the previous year. Income from operations before special items remained below the previous years level in the second quarter and almost achieved the previous years level in the first six months. Oil & Gas In the Oil & Gas segment, sales in the second quarter declined by 10.4 % compared with the same period in 2001 to euro 879 million (volumes +14 %, prices/currency - 24 %). Volumes increased in the natural gas business. The sales decline is primarily due to a decrease in the average price of crude oil by approximately $2.3/barrel. In addition, sales were negatively affected by the weakening weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. of the U.S.
dollar against the euro. Compared with the same period of 2001,
second-quarter income from operations was 22.8 % lower at euro 292
million. Earnings from the oil business declined, while earnings from
the natural gas business improved. Foreign income taxes for oil
production, which are non-compensable with German taxes, amounted to
euro 101 million in the second quarter (2001: euro 157 million) and euro
183 million in the first six months of 2002 (2001: euro 278 million).
These are included in tax expenses.
Regions
Location of company Sales Income from Income from
operations before operations
special items
Change Change Change
Million euro 2001 2000 in % 2001 2000 in % 2001 2000 in %
2nd Quarter
Europe 4,826 4,877 (1.0) 679 802 (15.3) 678 605 12,1
- thereof
Germany 3,297 3,372 (2.2) 483 599 (19.4) 482 500 (3.6)
North America
(NAFTA) 2,261 2,179 3.8 77 (70) . 73 (100) .
South America 331 456 (27.4) (29) 29 . (29) 29 .
Asia,
Pacific Area,
Africa 961 817 17.6 95 (10) . 95 (10) .
8,379 8,329 0.6 822 751 9.5 817 304(a) 168.8
1st Half
Europe 9,726 10,736 (9.4) 1,446 1,751 (17.4) 1,445 1,528 (5.4)
- thereof
Germany 6,802 7,411 (8.2) 1,051 1,226 (14.3) 1,050 1,113 (5.7)
North America
(NAFTA) 4,381 4,385 (0.1) 105 (83) . 97 (257) .
South America 640 884 (27.6) (35) 40 . (35) 37 .
Asia,
Pacific Area,
Africa 1,871 1,613 16.0 124 5 . 124 5 .
16,618 17,618 (5.7) 1,640 1,713 (4.3) 1,631 1,093a 49.2
a) Including provisions for structural measures not yet allocated.
Sales based on location of customer
2nd Quarter 1st Half
Change Change
Million euro 2002 2001 in % 2002 2001 in %
Europe 4,428 4,490 (1.4) 8,993 9,936 (9.5)
- thereof
Germany 1,686 1,756 (4.0) 3,580 4,045 (11.5)
North America
(NAFTA) 2,251 2,124 6.0 4,339 4,279 1.4
South America 405 550 (26.4) 785 1,074 (26.9)
Asia,
Pacific Area,
Africa 1,295 1,165 11.2 2,501 2,329 7.4
8,379 8,329 0.6 16,618 17,618 (5.7)
Business with customers located in Europe picked up in the second quarter; sales were only 1.4 % lower compared with the previous year. In particular, the segments Plastics & Fibers and Chemicals had higher sales in Europe. In the second quarter, business in Europe accounted for 83 % of the income from operations of the BASF Group. Although earnings declined in the Oil & Gas segment, they still accounted for 39 % of earnings in Europe. Income from operations before special items declined 15.3 % to euro 679 million. In the nafta region, sales increased by 6 % in the second quarter despite a decline in the average exchange rate of the dollar against the euro by about 5 %. This sales increase was largely due to the new steam cracker in Port Arthur, Texas. Income from operations before special items continued to improve and was euro 77 million, compared with a loss of euro 70 million in the same period of 2001. In South America, sales fell drastically dras·tic adj. 1. Severe or radical in nature; extreme: the drastic measure of amputating the entire leg; drastic social change brought about by the French Revolution. 2. in the second quarter as a result of the economic crisis in Argentina Argentina (ärjəntē`nə, Span. ärhāntē`nä), officially Argentine Republic, republic (2005 est. pop. 39,538,000), 1,072,157 sq mi (2,776,889 sq km), S South America. and the rapid devaluation of the Brazilian real The real (IPA: [xe'aw] or [ʁe'aɫ], symbol: R$, ISO 4217 code: BRL, plural: reais) is the currency of Brazil. It is also the name of the earliest Brazilian currency (see from the Colonial period to 1942. . The decline in sales particularly af-fected the Agricultural Products and Coatings divisions. Income from operations was negative in the second quarter. This was partially caused by devaluation losses in Argentina due to the further decline in the exchange rate of the peso. In the Asia, Pacific Area, Africa region, sales increased by 11.2 % in the second quarter. Business grew in Korea Korea (kôrē`ə, kə–), Korean Hanguk or Choson, region and historic country (85,049 sq mi/220,277 sq km), E Asia. in particular. Income from operations improved considerably as a result of the increased contribution to earnings of the site in Kuantan Kuantan is the state capital of Pahang, the largest state in Peninsular Malaysia. It is situated near Kuantan River mouth and facing the South China Sea. The town comprises 58% of Malays, 32% of Chinese, 4% of Indian and 6% of other races. , Malaysia Malaysia (məlā`zhə), independent federation (2005 est. pop. 23,953,000), 128,430 sq mi (332,633 sq km), Southeast Asia. The official capital and by far the largest city is Kuala Lumpur; Putrajaya is the adminstrative capital. , due to currency translation effects, as well as growth in styrenics in Korea. Employees Since the end of 2001, the number of employees has declined by 1,832, in particular due to the restructuring measures started last year. The decline in the various regions was as follows: Europe 899, nafta 523, South America 388. Personnel costs declined in the second quarter by 3.7 % to euro 1,527 million and in the first six months of 2002 by 4.2 % to euro 3,005 million.
Number of employees
2nd Quarter 1st Half Year 2001
2002 2001 2002 2001
End of period 90,713 92,249 90,713 92,249 92,545
Average 90,941 92,312 91,435 95,896 94,744
Finance Cash provided by operating activities was euro 823 million in the first six months of 2002; the increase of euro 543 million compared with the same period in 2001 was due to the improvement in earnings. In current assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. , funds employed in inventories were lower, both compared with the end of the year and with the first six months. Since the end of the year, however, funds employed in accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying increased as a result of business growth and seasonal effects. The level of receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed has been reduced compared with the first half of 2001. Cash outflows were related to payments for fines and claims for damages relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc antitrust Antitrust The antitrust laws apply to virtually all industries and to every level of business, including manufacturing, transportation, distribution, and marketing. They prohibit a variety of practices that restrain trade. violations in the vitamins business which occurred several years ago, as well as the implementation of the restructuring measures decided upon last year. Cash used in investing activities amounted to euro 838 million. As planned, expenditures for tangible and intangible fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → were reduced and were euro 280 million lower than in the previous year. A net total of euro 684 million was raised through financing activities, in particular through the issue of commercial paper. Since the end of 2001, financial indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. has increased by euro 1,141 million to euro 3,976 million. In the same period, liquid funds increased by euro 551 million to euro 1,294 million. Consolidated Statements of Cash Flow 1st Half Million euro 2002 2001 Net income(a) 1,058 334 Depreciation of fixed assets 1,222 1,355 Changes in net current assets (1,120) (1,246) Miscellaneous items (337) (163) Cash provided by operating activities 823 280 Expenditures for tangible and intangible fixed assets (1,021) (1,301) Acquisitions/divestitures, net - 7,281 Financial investments and other items 183 272 Cash provided by (used in) investing activities (838) 6,252 Proceeds from capital increases 38 87 Changes in financial indebtedness 1,448 (5,096) Dividends (802) (1,236) Cash provided by (used in) financing activities 684 (6,245) Net changes in cash and cash equivalents 669 287 Cash and cash equivalents as of beginning of year and other changes 338 604 Cash and cash equivalents 1,007 891 Securities held as current assets 287 387 Liquid funds 1,294 1,278 a) Excluding extraordinary income in previous year Forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This report contains forward-looking statements under the U.S. Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements are based on current expectations, estimates and projections of BASF management and currently available information. They are not guarantees of future performance, involve certain risks and uncertainties that are difficult to predict and are based upon assumptions as to future events that may not prove to be accurate. Many factors could cause the actual results, performance or achievements of BASF to be materially different from those that may be expressed or implied by such statements. Such factors include those discussed in BASFs Form 20-F filed with the Securities and Exchange Commission. [The Annual Report on Form 20-F is available on the Internet at www.basf.com.] We do not assume any obligation to update the forward- looking statements contained in this report.
Financial Statement of BASF Group (abridged version)
Consolidated Statements of Income
2nd Quarter Change 1st Quarter Change
Million euro 2002 2001 in % 2002 2001 in %
Sales, net of
natural gas taxes 8,379 8,329 0.6 16,618 17,618 (5.7)
Cost of sales 5,536 5,634 (1.7) 11,013 11,765 (6.4)
Gross profit on sales 2,843 2,695 5.5 5,605 5,853 (4.2)
Selling expenses 1,231 1,283 (4.1) 2,442 2,669 (8.5)
General and
administrative expenses 177 138 28.3 348 321 8.4
Research and
development expenses 282 293 (3.8) 594 670 (11.3)
Other operating income 148 204 (27.5) 333 523 (36.3)
Other operating expenses 484 881 (45.1) 923 1,623 (43.1)
Income from operations 817 304 168.8 1,631 1,093 49.2
Expense/income
from financial assets 77 (27) . 77 (58) .
Interest result (69) (76) 9.2 (45) (203) 77.8
Financial result 8 (103) . 32 (261) .
Income from
ordinary activities 825 201 310.4 1,663 832 99.9
Extraordinary income - - - - 6,010 -
Income before taxes
and minority interests 825 201 310.4 1,663 6,842 (75.7)
Income taxes 294 200 47.0 557 635 (12.3)
Minority interests 29 (10) . 48 3 .
Net income 502 11 . 1,058 6,204 (82.9)
Earnings per share
- ordinary (euro) 0.86 0.02 . 1.81 0.55 229.1
- extraordinary (euro) - - - - 9.61 -
Number of shares in
millions (weighted) 583 614 (5.0) 583 611 (4.6)
Consolidated Balance Sheets
Assets June 30 Change Dec. 31 Change
Million euro 2002 2001 in % 2001 in %
Intangible assets 3,441 4,140 (16.9) 3,943 (12.7)
Property, plant
and equipment 13,512 14,128 (4.4) 14,190 (4.8)
Financial assets 3,322 3,205 3.7 3,360 (1.1)
Fixed assets 20,275 21,473 (5.6) 21,493 (5.7)
Inventories 4,421 5,018 (11.9) 5,007 (11.7)
Accounts receivable, trade 6,341 7,190 (11.8) 5,875 7.9
Miscellaneous receivables 2,742 3,034 (9.6) 2,384 15.0
Deferred taxes 1,209 1,313 (7.9) 1,373 (11.9)
Liquid funds 1,294 1,278 1.3 743 74.2
Current assets 16,007 17,833 (10.2) 15,382 4.1
Total assets 36,282 39,306 (7.7) 36,875 (1.6)
Stockholders' equity
and liabilities June 30 Change Dec. 31 Change
Million euro 2002 2001 in % 2001 in %
Subscribed capital
and capital surplus 4,408 4,407 0.0 4,408 0.0
Retained earnings
and other equity 12,549 14,547 (13.7) 12,754 (1.6)
Minority interests 395 368 7.3 360 9.7
Stockholders equity 17,352 19,322 (10.2) 17,522 (1.0)
Provisions for
pensions and similar
obligations 3,858 3,936 (2.0) 3,953 (2.4)
Provisions for taxes
and other provisions 5,066 6,256 (19.0) 6,188 (18.1)
Provisions 8,924 10,192 (12.4) 10,141 (12.0)
Financial indebtedness 3,976 2,922 36.1 2,835 40.2
Accounts payable, trade 2,417 2,662 (9.2) 2,491 (3.0)
Other liabilities 3,613 4,208 (14.1) 3,886 (7.0)
Liabilities 10,006 9,792 2.2 9,212 8.6
Total stockholders
equity and liabilities 36,282 39,306 (7.7) 36,875 (1.6)
The interim financial statements have not been audited.
Publisher:
BASF Aktiengesellschaft
Corporate Department Communications
67056 Ludwigshafen
Germany
You can find HTML HTML in full HyperText Markup Language Markup language derived from SGML that is used to prepare hypertext documents. Relatively easy for nonprogrammers to master, HTML is the language used for documents on the World Wide Web. versions of this and other publications from BASF on our homepage at www.basf.com. You can also order reports: - by telephone: +49 62160-0 - by fax: +49 6021 704-431 - by e-mail: medien-service@basf-ag.de - on the Internet: www.basf.com Important dates November 14, 2002 Interim Report Third Quarter 2002 March 18, 2003 Financial Results 2002 April 29, 2003 Interim Report First Quarter 2003 May 6, 2003 Annual Meeting, Mannheim August 7, 2003 Interim Report Second Quarter 2003 Internet: www.basf.com BASF Aktiengesellschaft 67056 Ludwigshafen Germany |
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