BASF Has a Strong Start in North America
April 28 2005 - 8:21AM
PR Newswire (US)
BASF Has a Strong Start in North America First quarter 2005 income
before special items triples FLORHAM PARK, N.J., April 28
/PRNewswire-FirstCall/ -- BASF's North American business today
posted strong financial results for the first quarter 2005,
continuing the company's trend of improved financial performance in
the region. BASF Aktiengesellschaft today announced its first
quarter 2005 results in Ludwigshafen, Germany. Details can be found
under http://www.basf.de/interimreport . First quarter sales in
North America were EUR2.265 billion (approximately $2.94 billion),
up 18 percent over the first quarter of 2004. Income from
operations before special items in the first quarter of 2005 was
EUR271 million (approximately $352 million) up 201 percent from
EUR90 million in the first quarter of 2004. BASF's business in
North America is benefiting from improved economic conditions that
have resulted in higher prices and increased demand. In addition,
the North American restructuring initiative has contributed to the
improved performance. The program, which began in 2002, includes
efforts to optimize support functions, improve manufacturing
operations, and streamline business processes. As of the end of
2004, the restructuring had achieved annual cost savings of about
$175 million. Employment at BASF in North America has been reduced
by approximately 4,000 positions as a result of the restructuring
and other actions. "Our restructuring initiative has proven very
successful," said Klaus Peter Loebbe, Chairman and Chief Executive
Officer of BASF Corporation, BASF's North American affiliate. "Our
2004 and first quarter 2005 financial results clearly reflect the
impact of these efforts to date." "Our strategy in 2005 will be to
continue a keen focus on improving productivity and efficiency,
delivering greater customer value through innovation, and
optimizing and strengthening our business portfolio," Loebbe said.
Note: BASF Group reports financial results in Euros. References to
U.S. dollars are made using an exchange rate of EUR1.00 = $1.30.
This conversion is provided solely for the convenience of the
reader. BASF -- The Chemical Company. We don't make a lot of the
products you buy. We make a lot of the products you buy better.(R)
BASF Corporation, headquartered in New Jersey, is the North
American affiliate of BASF AG, Ludwigshafen, Germany. We employ
about 10,000 people in North America and had sales of approximately
$11 billion in 2004. For more information about BASF's North
American operations, or to sign up to receive news releases by
e-mail, visit http://www.basf.com/usa . BASF is the world's leading
chemical company: The Chemical Company. Its portfolio ranges from
chemicals, plastics, performance products, agricultural products
and fine chemicals to crude oil and natural gas. As a reliable
partner to virtually all industries, BASF's intelligent solutions
and high-value products help its customers to be more successful.
BASF develops new technologies and uses them to open up additional
market opportunities. It combines economic success with
environmental protection and social responsibility, thus
contributing to a better future. In 2004, BASF had approximately
82,000 employees and posted sales of more than $50 billion. BASF
shares are traded on the stock exchanges in Frankfurt (BAS), London
(BFA), New York (BF), Paris (BA) and Zurich (AN). Further
information on BASF is available on the Internet at
http://www.basf.com/ . DATASOURCE: BASF CONTACT: Jack Maurer of
BASF, +1-973-245-6072, Web site: http://www.basf.com/usa
http://www.basf.com/ http://www.basf.de/interimreport
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