LUDWIGSHAFEN, Germany— BASF released its fourth quarter (4Q09) and fiscal year results, with sales down across the board for the year with a slight rebound in the fourth quarter. Sales were down 19 percent in 2009 to €50.7 billion (US$68.7 billion); performance products, which includes the human and animal divisions of BASF, was up in sales as a result of the completed acquisition of Ciba. However, volumes and prices declined in the segment, and EBIT before special items lower due to the continued effects of the global recession, with additional impact felt from the Ciba integration.
The company expects to see some growth in 2010, building on a 4Q09 sales increase of 2.9 percent compared to 3Q09. “The fourth quarter of 2009 was encouraging and gives us grounds for confidence,” said Jurgen Hambrecht, Ph.D., chairman. “The worst is behind us, even though dark clouds remain. 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.”
Hambrecht noted the company will continue to implement efficiency and restructuring programs to optimize cash flow, and to adjust investment plans as the economy dictates. He added, “We expect a significant increase in EBIT, mainly due to a rise in volumes and cost synergies from the Ciba integration. Furthermore, costs related to the integration of Ciba will be considerably lower in 2010 than they were in 2009.
