BASF shows signs of recovery towards the end of a bad 2009
BASF says it is confident for 2010, after publishing fourth quarter results suggesting that a slow recovery may be around the corner.
BASF says it is confident for 2010, after publishing fourth quarter results suggesting that a slow recovery may be around the corner. The chemical company announced sales of €50.7bn, a decline of 19% compared to 2008. But while sales in the fourth quarter decreased 8% compared to the same period of the previous year, they were up 2.9% on sales in the third quarter of 2009. According to the company, measures undertaken to adjust capacities and increase efficiency following a steep decline in late 2008 and early 2009 helped BASF to stabilise and improve earnings from quarter to quarter.
BASF’s performance products business did experience an increase in sales due to the Ciba acquisition, however volumes and prices declined in all divisions of the segment.
Sales in Europe (€30.4bn) and North America (€9.3bn) suffered in 2009, sliding over 20% in both regions. In contrast, sales in South America, Africa and the Middle East declined by just 2% to €3bn.
“The slow recovery is continuing,” said BASF chairman Jürgen Hambrecht. “The fourth quarter of 2009 was encouraging and gives us grounds for confidence. The worst is behind us, even though dark clouds remain.” However, Hambrecht refused to be over-confident adding: “2010 will be a transitional year with uneven development from region to region. Overall, there are no signs of a self-sustaining, long term recovery.”
