BASF Group reports financial results.LUDWIGSHAFEN, Germany--(BUSINESS WIRE)--Nov. 8, 1995--BASF Group reports financial results: -0- BASF Group and BASF Aktiengesellschaft
In Millions of DM 3rd Quarter 3rd Quarter
of 1995 of 1994 Change
BASF Group Net sales (without petroleum and natural gas taxes) 11,060 10,685 +3.5% Petroleum and natural gas taxes 786 720 +9.2% Net sales 11,846 11,405 +3.9% Germany 2,971 2,956 +0.5% Outside Germany 8,089 7,729 +4.7% Profit before taxes 1,071 526 +103.6% Capital expenditures 752 607 +23.9% Personnel expense (a) 2,462 2,426 +1.5% Number of employees (b)
In Millions of DM January-September Year
1995 1994 Change 1994
BASF Group
Net sales (without petroleum and natural gas taxes) 35,117 32,369 + 8.5% 43,674 Petroleum and natural gas taxes 2,327 2,121 + 9.7% 2,891 Net sales 37,444 34,490 + 8.6% 46,565 Germany 9,529 8,919 + 6.8% 11,980 Outside Germany 25,588 23,450 + 9.1% 31,694 Profit before taxes 3,096 1,209 +156.1% 2,111 Capital expenditures 1,894 1,893 + 0.1% 2,707 Personnel expense (a) 7,171 7,108 + 0.9% 9,749 Number of employees (b) 105,525 107,029 - 1.4% 106,266 BASF Aktiengesellschaft
In Millions of DM 3rd Quarter 3rd Quarter
of 1995 of 1994 Change
Net sales 4,972 4,653 + 6.9% Germany 1,706 1,590 + 7.3% Exports 3,266 3,063 + 6.6% Profit before taxes 547 242 +126.0% Capital expenditures 201 156 +28.8% Personnel expense (a) 1,232 1,176 + 4.8% Number of employees (b)
In Millions of DM January-September Year
1995 1994 Change 1994
Net sales 16,308 14,089 +15.7% 19,257 Germany 5,418 4,807 +12.7% 6,541 Exports 10,890 9,282 +17.3% 12,716 Profit before taxes 1,708 726 +135.3% 1,455 Capital expenditures 530 432 +22.7% 613 Personnel expense (a) 3,469 3,426 + 1.3% 4,628 Number of employees (b) 44,728 46,897 - 4.6% 46,463 (a) excluding pension benefits (b) at end of respective period Overall, our business proceeded at a gratifyingly grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. high level. However, increases in sales and earnings slowed during the 3rd quarter of 1995. In contrast to 1994's results, which were unusually good, the economic lull typical of the summer months reoccured. Sales In the 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 Group, we increased sales in the 3rd quarter of 1995 by 3.5% in comparison with the same quarter last year. After the summer months, however, business did not pick up in September as it did in the 3rd quarter of 1994. The reduced volume of demand also had repercussions repercussions npl → répercussions fpl repercussions npl → Auswirkungen pl on selling prices, which dropped slightly. Overall, our sales in the first 9 months of the year totaled DM 35.1 billion, an increase of DM 2.7 billion or 8.5% over the same period last year. The main contributory con·trib·u·to·ry adj. 1. Of, relating to, or involving contribution. 2. Helping to bring about a result. 3. Subject to an impost or levy. n. pl. factors were higher volumes over the entire period -- despite the slower pace in the 3rd quarter -- and the fact that selling prices were significantly higher than the previous year's level. The sales figures sales figures npl → cifras fpl de ventas include DM 280 million from the former Boots PLC pharmaceutical operations, acquired on April 1. The pattern of business in Europe was uneven. Volumes in Germany were substantially stable. In Eastern Europe Eastern Europe The countries of eastern Europe, especially those that were allied with the USSR in the Warsaw Pact, which was established in 1955 and dissolved in 1991. , growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. were well into double digits Double Digits was a pricing game on the American television game show, The Price Is Right. Played from April 20, 1973 through May 18, 1973's show, it was played for a car and used small prizes. in Romania, the Czech Republic Czech Republic, Czech Česká Republika (2005 est. pop. 10,241,000), republic, 29,677 sq mi (78,864 sq km), central Europe. It is bordered by Slovakia on the east, Austria on the south, Germany on the west, and Poland on the north. , Hungary and Bulgaria. We also achieved gratifying grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. sales increases in France, especially in the crop protection business, and in the Benelux states, Spain and the United Kingdom. In dollar terms, BASF Corporation increased its sales revenue by more than 14%. This increase in sales is not reflected by the DM conversion, as the dollar parity parity or space parity, in physics, quantity that refers to the relationship between an object or process and the image that it can produce in a mirror. in the comparison period was 12.6% lower. Business in Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. suffered from the difficult economic environment, the slack 1. (operating system) slack - Internal fragmentation. Space allocated to a disk file but not actually used to store useful information. 2. (jargon) slack domestic economy in our important markets, and the currency situation in Mexico. The industrial business in particular lacked the necessary stimuli. In the Far East we achieved a gratifying expansion of our business, and growth rates ran well into double figures in many countries. In Japan, although the economic climate remained slack, we increased our sales by nearly 9%. The big sales increase in the region as a whole is partly attributable to the fact that additional companies have been included in the scope of consolidation. At BASF Aktiengesellschaft we increased sales in the first nine months by more than DM 2.2 billion (+ 15.7%) to DM 16.3 billion. The increase was due to higher volumes and improved prices, especially in Chemicals, and Plastics and Fibers. 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 certain currencies important to us led to perceptible per·cep·ti·ble adj. Capable of being perceived by the senses or the mind: perceptible sounds in the night. [Late Latin perceptibilis, from Latin perceptus losses in export sales revenue, but sales in the 3rd quarter were still 6.9% higher than in the previous year. The export rate was nearly 67%. Operations During the first nine months, sales of Plastics and Fibers, and of Chemicals, increased favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. . Particularly successful products were polyolefins and PVC PVC: see polyvinyl chloride. PVC in full polyvinyl chloride Synthetic resin, an organic polymer made by treating vinyl chloride monomers with a peroxide. , as well as engineering plastics in the Plastics and Fibers operating sector. The effects of currency movements meant that fiber products did not quite reach the same level as in the 3rd quarter of last year. Chemicals, apart from fine chemicals, achieved double-digit growth rates. Industrial chemicals are still benefiting from high demand and improved price levels. In basic chemicals, however, growth slowed in the 3rd quarter, partly due to scheduled large-scale plant shutdowns. The Dyestuffs dyestuffs npl → colorants mpl dyestuffs dye npl → Farbstoffe pl dyestuffs npl → coloranti and Finishing Products operating sector has included, since the start of the year, sales of graphic systems, which were previously included in Consumer Products. The rates of change have been calculated on a comparable basis. Increases were achieved, especially by dispersions and specialty chemicals A Specialty chemical is a chemical produced for a specialized use. They are produced in lower volume than bulk chemicals, of which petrochemicals, made from oil feedstocks, are the most common. However, both are produced in a chemical plant. , due to higher volumes and selling prices. However, business in textile and leather dyes and chemicals and in colorants and process chemicals failed to pick up. Earnings were affected by currency factors in the export business and continuing price pressures. Sales of Consumer Products as a whole matched the previous year's level. The decline in sales of information systems, resulting from continuing price slides, was offset by additional sales from the Boots operations in pharmaceuticals. Earnings Earnings in the 3rd quarter were more than double those for the same quarter last year. Because of the relatively high comparison base of the previous year, the rate of increase is lower than it was in the first two quarters. In the first nine months, we achieved in the BASF Group a profit before taxes of DM 3.096 billion. This represents an increase of 156% over the same period last year. In addition to cost reductions as a result of structural measures, the main contributing factors were increased volumes and improved selling prices, especially in Plastics and Fibers, but also in Chemicals. In addition to the rise in profit at BASF Aktiengesellschaft, BASF Corporation made a major contribution to this gratifying pattern of business with an earnings swing of about US$ 550 million, the write-downs made at the end of the previous year being taken into account pro rata [Latin, Proportionately.] A phrase that describes a division made according to a certain rate, percentage, or share. In a Bankruptcy case, when the debtor is insolvent, creditors generally agree to accept a pro rata share of what is owed to them. . Earnings as of September 30, 1995 already include DM 300 million of the DM 360 million expected charges for the whole year for the Boots integration and the 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). of the graphic systems business. Capital expenditures Capital expenditures on tangible fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → in the first nine months again matched the previous year's figure. They were higher than in the previous year at the Ludwigshafen site, and also in petroleum refining refining, any of various processes for separating impurities from crude or semifinished materials. It includes the finer processes of metallurgy, the fractional distillation of petroleum into its commercial products, and the purifying of cane, beet, and maple sugar and exploration. Substantial additions to assets outside tangible fixed assets resulted from the acquisition of intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. associated with the integration of the Boots PLC pharmaceutical operations. Employees The number of people employed by the BASF Group has fallen by a total of 741 since the end of 1994. The addition of 2,208 employees as a result of changes in the scope of consolidation and the incorporation of the Boots operations 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. and France was offset by further job reductions totaling 2,949 in the BASF Group as a whole. At BASF Aktiengesellschaft, the number of employees has fallen by 1,735 since the end of 1994 to 44,728. Future prospects We expect business to proceed at a satisfactory level overall during the coming months. The variation in economic trends from region to region and more noticeable pressure on prices will, however, impact sales and earnings. We expect improvements in southeast Asia Southeast Asia, region of Asia (1990 est. pop. 442,500,000), c.1,740,000 sq mi (4,506,600 sq km), bounded roughly by the Indian subcontinent on the west, China on the north, and the Pacific Ocean on the east. and Brazil and a stable trend 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. . We are still expecting a return on capital of 10% for 1995. Ludwigshafen, November 1995 BASF GROUP Sales (c) of the Operating Divisions in the 1st-3rd quarters of 1995 in millions of DM 1st-3rd quarter of 1995 Change Plastics and Fibers 9,717 +16.8% Dyestuffs and Finishing Products 7,178 + 3.3% (d) Consumer Products 5,839 + 0.3% (d) Chemicals 5,510 +16.0% Oil and Gas 3,110 + 4.2% Products for Agriculture (d) 3,018 + 4.3% (c) without petroleum and natural gas taxes and sales from Other operations (d) comparable regarding graphic systems Sales (e) by Regions (locations of customers) in the 1st-3rd quarters of 1995 in millions of DM 1st-3rd quarters of 1995 Change Europe 22,632 +11.2% thereof Germany 9,529 + 6.8% North America 6,680 + 0.2% Asia, Australia, Africa 3,863 +14.8% Latin America 1,942 - 1.7% (e) without petroleum and natural gas taxes CONTACT: BASF Aktiengesellschaft Telephone (621) 6099223 or (621) 6020710 |
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