BASF achieved annual target
BASF achieved annual target
BASF, a leading global chemical company, increased its sales and revenues in the fourth quarter and in the full financial year of 2014, and expects a further slight rise in sales with income from operations (EBIT) before special items are likely to match the level of 2014.
The group reported fourth quarter sales at €18.0 billion, almost matching the level of the previous year, with sales volumes increased by a single per cent. EBIT before special items rose by €40 million to €1.5 billion.
EBIT before special items increased mainly in the Chemicals and Agricultural Solutions segments, while the company experienced a significant decrease in earnings in the Oil & Gas segment due to lower oil prices.
For the entire financial year of 2014, sales hit €74.3 billion, matching 2013 levels. EBIT before special items grew by €280 million to €7.4 billion, due to a larger share contribution from the chemicals business.
“We stand by our dividend policy and will propose a dividend of €2.80 per share at the Annual Shareholders’ Meeting. This is an increase of 3.7 per cent compared with the previous year. Based on the year-end share price for 2014, BASF shares again offer a high dividend yield of 4 per cent,” said BASF chairman Kurt Bock.
“The outlook for the full year of 2015,” Bock said, “is subject to significant uncertainty. Oil and raw material prices are volatile, as are currencies; the emerging markets are growing more slowly; and the global economy is being dampened by geopolitical conflict. For 2015, we nevertheless anticipate somewhat stronger growth in the global economy, industrial production and the chemical industry than in 2014.”
BASF plans a total capital expenditure of €4.0 billion this year, less than the €5.1 billion in 2014. In the Oil & Gas segment, investment levels will be lower than in the previous year.
