BASF Group and BASF Aktiengesellschaft Announces Earnings.

LUDWIGSHAFEN, Germany--(BUSINESS WIRE)--May 15, 1997--

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Interim Report - 1st Quarter 1997



BASF Group
_______________________________________________________________


in millions          1st quarter  1st quarter    Change    Year
of DM                    of 1997    of 1996                1996
________________________________________________________________

Net sales(a)             13,439     11,832      +13.6%   48,776

   Germany                3,521      3,182      +10.7%   12,971
   Outside Germany        9,918      8,650      +14.7%   35,805

Income from operations    1,160      1,066      + 8.8%    4,293
Profit before taxes       1,163      1,120      + 3.8%    4,414

Capital expenditures        635        606      + 4.8     3,639

Personnel expense(b)      2,587      2,448      + 5.7%   10,260

Number of employees
   (Mar. 31/Dec. 31)    102,578    106,420      - 3.6%  103,406
_______________________________________________________________


BASF Aktiengesellschaft

in millions          1st quarter    1st quarter   Change    Year
of DM                  of 1997        of 1996               1996
_________________________________________________________________

Net sales               5,717         5,123       +11.6%   20,607

  Germany               1,680         1,542       + 8.9%    6,304
  Exports               4,037         3,581       +12.7%   14,303

Income from operations    293           310       - 5.5%    1,787

Profit before taxes       539           471       +14.4%    2,215

Capital expenditures      164           184       -10.9%      924

Personnel expense(b)    1,209         1,125       + 7.5%    4,776
Number of employees
   (Mar. 31/Dec. 31)   44,030        43,852       + 0.4%   44,402
_______________________________________________________________

(a) without petroleum and natural gas taxes
(b) without pension benefits

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    We are expanding our quarterly reporting as a way of meeting the
increased demand for information.  The following additional details
will be given in future: income from operations, broken down by
segments and regions; regional sales by company location; the
profit-and-loss calculation right through to profit after taxes and
minority interests; and the main balance-sheet items, each with an
indication of the previous year's figures for comparison.


Sales

    Last year's gratifying business trend continued in the first
quarter of 1997.  An overall vigorous rise in volumes and a
considerable expansion of the Oil and Gas segment with improved
prices were the mainstays of the increase in sales, which results
from the following changes:

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Volumes                 +  7.7%
Prices                  +  2.1%
Currency and
conversion              +  4.1%
Scope of consolidation     0.3%
Total                   + 13.6%

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    The currency and conversion factors originate mainly from the
rise in the U.S.  dollar exchange rate.  The average rate of exchange
was 13% higher in the first quarter of 1997 than in the equivalent
period of 1996, resulting in an increase in sales of more than DM 300
million.
    The additional sales of the corn herbicide business acquired at
the end of 1996 substantially offset the sales lost as a result of
the divestiture of the magnetic product business.
    In Europe, we improved our business in most countries.  In
Germany, Oil and Gas accounted for about three-quarters of the
increased sales.
    Our business in North America continued to make good progress,
although some of the divisions suffered intensified pressure on
selling prices.  Beside the influence of the exchange rate, the crop
protection business, fiber products and Polioles S.A.  de C.V.,
Mexico, D.F., which has now been added to the scope of consolidation,
substantially contributed to the increase in sales.
    In South America, there was a gratifying advance in sales,
especially in Brazil and Argentina.  Colorants and Finishing Products
made particularly strong gains, partly owing to the acquisition of
Zeneca s textile dye operations in August 1996.
    In the Asia, Pacific Area, Africa region, we achieved an
above-average increase in sales of 18% in western Asia.  In south and
east Asia, sales improved by 14%.  Sales performance in Hong Kong,
Singapore, Malaysia and India improved substantially; in Japan, too,
we were able to raise our sales in DM despite the slight fall in the
yen s exchange rate.  In Africa, we augmented sales by over 30%.
    The increase in sales at BASF Aktiengesellschaft is entirely
attributable to strong volume growth.  Despite continuing keen
competition, selling prices again reached the previous year's level.
Exports grew even faster than business with our German customers.
The export rate rose from 69.9% in the first quarter of 1996 to
70.6%.


Segments

    Health and Nutrition and Oil and Gas made an above-average
contribution to the increase in Group sales.  Very gratifying
progress was made by the crop protection business, although the other
divisions, too, increased their sales significantly.  Earnings are
burdened by the costs of introducing new pharmaceuticals in North
America.
    In Colorants and Finishing Products, all divisions, apart from
Colorants and Printing Systems, where selling prices fell further,
achieved double-digit growth rates in sales.  Particularly strong
growth was recorded by the Textiles and Leather Dyes and Chemicals
Division partly as a result of the textile dye operations acquired in
the previous year.  Earnings were improved, especially in the
Coatings Division.
    Chemicals again increased sales considerably, principally due to
high volumes.  The Basic Chemicals Division substantially increased
its sales and its contribution to earnings.
    In Plastics and Fibers, sales of the Polyolefins and PVC Division
increased vigorously.  Both higher volumes and a significantly
improved level of selling prices contributed to this rise so that a
positive contribution was also made to earnings.  The Foams and
Reactive Resins Division, however, recorded declining sales and
earnings as a result of a sharp drop in selling prices.

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BASF Group _______________________________________________________________

Sales of the segments(a) in the 1st quarter of 1997

in millions of DM 1st quarter of 1997 Change _______________________________________________________________

Health and Nutrition  2,863 +18.3% Colorants and Finishing Products 3,081 +12.8% Chemicals 2,028 +14.8% Plastics and Fibers 3,248 +13.5% Oil and Gas 1,620 +39.2% Other 599 -32.5% _______________________________________________________________

(a) without petroleum and natural gas taxes

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Income from operations of the segments

in millions of DM 1st quarter 1st quarter Change Year

of 1997 of 1996 Mill. DM 1996 _________________________________________________________________ Health and Nutrition 325 337 -12 781 Colorants and Finishing Products 183 100 + 83 565 Chemicals 378 358 + 20 1,733 Plastics and Fibers 128 153 - 25 974 Oil and Gas 273 156 +117 744 Other -127 - 38 - 89 - 504

thereof costs of

exploratory research  68 50 + 18 224

________________________________________

1,160 1,066 + 94 4,293

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Earnings

BASF Group earnings exceeded the high level of the previous year. As a consequence of increasing raw materials prices, production costs rose somewhat more sharply than sales. Personnel costs rose by 5.7% in the first quarter of 1997. The increase in personnel costs in North America caused by the dollar conversion rate alone accounts for 2 percentage points of this rise. Moreover, provisions for flexible remuneration systems and for part-time working programs for older staff are being accrued regularly this year, whereas in the previous year they had to be provided for the first time at the end of the year. Overall, income from operations, which reflects the development of the operating business, improved by 8.8%.

The financial result declined in comparison with the first quarter of 1996. The interest result did not match the previous year's figure due to a reduction in cash and cash items. Net income from financial assets was also down.

Profit before taxes improved by DM 43 million, or 3.8%, to DM 1,163 million. As expected, the tax ratio increased, namely from 36.3% to 37.8%. After taxes and minority interests, net income was DM 714 million - DM 22 million, or 3.2%, more than in the same quarter last year.

At BASF Aktiengesellschaft, we substantially improved profit before taxes by DM 68 million, or 14.4%, to DM 539 million. Income from operations, however, declined by 5.5%, mainly owing to higher production costs as a result of increased raw materials prices. In contrast, net income from financial assets improved significantly, especially on account of Wintershall AG's higher contribution.

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Sales by regions (locations of customers)(a) in the
1st quarter of 1997

in millions of DM           1st quarter of 1997    Change
_______________________________________________________________

North America                      2,797             +21.8%
South America                        638             + 7.2%
Asia, Pacific Area, Africa         1,496             +16.0%
Europe                             8,508             +11.2%
   thereof Germany                 3,521             +10.7%
_______________________________________________________________

(a) without petroleum and natural gas taxes


Sales and income from operations by regions
(locations of companies)

in millions of DM                           Sales

                             1st quarter   1st quarter  Change
                                1997           1996        %
_________________________________________________________________

Europe                         9,562         8,636       +10.7%
thereof Germany                6,386         5,833       + 9.5%
North America                  2,726         2,244       +21.5%
South America                    516           431       +19.7%
Asia, Pacific Area, Africa       635           521       +21.9%
_________________________________________________________________
                              13,439        11,832       +13.6%


in millions of DM                Income from operations

                             1st quarter    1st quarter   Change
                                   1997          1996    Mill. DM
_________________________________________________________________

Europe                         924             811        +113
thereof Germany                564             511        + 53
North America                  187             252        - 65
South America                   30            - 21        + 51
Asia, Pacific Area, Africa      19              24        -  5
____________________________________________________________________________
_________________
                             1,160           1,066        + 94

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Capital expenditures

    Overall, we are planning capital expenditures of DM 3.8 billion
on tangible fixed assets in the BASF Group in 1997.  By the end of
the first quarter, we had already implemented DM 635 million of this.
Of this figure, 43% went to Germany and 16% to other sites in Europe;
32% were allocated to North America.


Employees

    The number of people employed by the BASF Group has fallen by a
total of 828 since the end of 1996, 372 of these at BASF
Aktiengesellschaft.  As a result of changes in the scope of
consolidation, the size of the workforce increased by 443.  These
additions contrast with a reduction of 1,271 in the number of jobs,
of which the closure of the magnetic product business in Indonesia
accounted for 214.
    Since 1994, BASF Aktiengesellschaft has continuously been
providing more positions for the training of young people.  We are
doing this again in 1997 and will offer 800 training positions in
Ludwigshafen.


Outlook

    We expect sales and earnings to continue at a high level in the
coming months.  Orders received and in hand confirm these growth
prospects.  We are aiming to increase Group sales to over DM 50
billion in 1997 and to exceed last year's results.

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Further reporting

First half 1997       August 14,1997
Third quarter 1997    November 13,1997
Year 1997             March 26,1998
1998 Annual Meeting   May 19,1998

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Financial statements of the BASF Group (short version)

Profit and loss account

in millions of DM

1st quarter 1st quarter Change Year

1997 1996 1996

Net sales(a) 13,439 11,832 +13.6% 48,776 Cost of sales 8,508 7,350 +15.8% 31,081

Gross profit on sales 4,931 4,482 +10.0% 17,695 Selling expense 2,176 2,002 + 8.7% 8,455 General administration expense 313 280 +11.8% 1,198 Research and development expense 561 538 + 4.3% 2,286 Other operating expense/ income (balance) 721 596 +21.0% 1,463

Income from operations 1,160 1,066 + 8.8% 4,293 Financial results 3 54 -94.4% 121

Profit before taxes 1,163 1,120 + 3.8% 4,414 Income taxes 440 406 + 8.4% 1,575 Minority interests 9 22 -59.1% 49

Net income after taxes 714 692 + 3.2% 2,790

(a) without petroleum and natural gas taxes

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Balance sheet

in millions of DM Assets 31.3.97 31.3.96 Change 31.12.96

Fixed assets  23,179 20,967 +10.5% 22,701 Inventories and receivables(a) 18,833 16,993 +10.8% 17,190 Cash and cash items 5,232 6,760 -22.6% 3,827

Current assets  24,065 23,753 + 1.3% 21,017

Assets 47,244 44,720 + 5.6% 43,718

Equity and liabilities 31.3.97 31.3.96 Change 31.12.96

Subscribed capital and capital surplus 8,008 7,753 + 3.3% 8,008 Revenue reserves and other equity 13,353 10,905 +22.4% 12,481

Equity 21,361 18,658 +14.5% 20,489 Provisions(a) 15,158 14,800 + 2.4% 14,558 Liabilities(a) 10,725 11,262 - 4.8% 8,671

Liabilities(a) 25,883 26,062 - 0.7% 23,229

Equity and liabilities 47,244 44,720 + 5.6% 43,718

(a) Including prepaid expenses, deferred income and special reserves

The interim balance has not been audited.

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CONTACT: BASF Aktiengesellschaft, Press Department

67056 Ludwigshafen, Germany

Tel. [phone]

or 60-99938