Record results for BASF

German chemicals company BASF posted the best results in their history in 2005. The company again grew profitably and faster than the market in 2005 on the basis of their own efforts and astute acquisitions. At their annual press conference on February 22, 2006, in Ludwigshafen, BASF reported sales of €42.7 billion (up 14%) and income from operations (EBIT) before special items of more than €6.1 billion (up 17%). 'Our results speak for themselves. We increased the premium earned on our cost of capital to just under €2.4 billion, and I would like to thank the entire BASF team for their outstanding achievements', said Dr Jürgen Hambrecht, chairman of BASF's board of executive directors. Hambrecht's top priority is to ensure BASF's long-term competitiveness. We will, therefore, proceed with our efficiency-enhancing measures and restructuring programmes', he said. Looking to the full year, Hambrecht is confident: 'We aim to continue to grow faster than the market, follow on from the strong level of income from operations before special items posted in 2005, and again earn a premium on our cost of capital.' With an increase of 15.4% compared with 2004, the chemicals segment posted record sales as a result of higher volumes and prices. In 2005, sales by location of company grew by double-digit rates in Europe (plus 11%), North America (plus 17%) and Asia Pacific (plus 23%). Sales in South America, Africa, Middle East rose 7%. Earnings growth in North America was particularly strong: EBIT tripled compared with the previous year. The target of reducing fixed costs by $250 million was achieved ahead of schedule. BASF are continuing with their programmes to increase efficiency and have now set themselves the goal of saving additional costs of $150 million per year by mid-2007.