• 1st half 2011: Sales up 19.4% and EBIT before special items
up 19.4% from the previous year
• 2nd quarter 2011: Sales up 13.9% and EBIT before special
items up 1.4%, on comparable basis up 16% from the
previous year
• Outlook for 2011 confirmed
Ludwigshafen, Germany – July 28, 2011 – In the first half of 2011 –
the International Year of Chemistry – BASF’s business remained
dynamic. The previous year’s excellent results were exceeded. “The
economic environment in the first half of 2011 was favorable for our
business. Our numbers show that we successfully took advantage of
this momentum,” said Dr. Kurt Bock, Chairman of the Board of
Executive Directors of BASF SE at the presentation of BASF’s results
in Ludwigshafen.
Following a strong start to the year, BASF had a good and very solid
second quarter. Sales improved by 13.9% to €18.5 billion and income
from operations (EBIT) before special items by 1.4% to €2.2 billion
despite the suspension of oil production in Libya. In the second
quarter of 2010, the Libyan activities contributed an EBIT before
special items of €280 million. On a comparable basis, EBIT before
special items thus increased by 16%.

Compared with the extraordinary growth in the first quarter, the growth
rates have normalized in the second quarter as expected. In addition,
for the first time since the first quarter of 2010 currency effects were
negative (minus 6%) due to the weak U.S. dollar. The inclusion of the
Cognis businesses made a positive contribution to sales. In the
chemicals business, sales volumes increased 5%. Due to the
suspension of oil production in Libya, the contribution to earnings before
taxes from Oil & Gas was lower compared with the same quarter of the
previous year.
For the first half of 2011, sales were €37.8 billion, an increase of 19.4%
compared with the same period of the previous year. EBIT before
special items rose by 19.4% to around €5 billion.
BASF confirms forecast for full year 2011
BASF continues to view the economic outlook as positive for the
second half of the year, but expects growth to be less dynamic, as
could be observed towards the end of the second quarter. Bock said:
“The economic risks remain: We continue to be concerned about the
development of the euro as well as the debt situation in some European
countries and the United States. Added to this is the persistently high oil
price, which is having a negative impact on margins across our value
chains and is leading to some customers being more cautious in their
orders.”
Price increases were necessary in several business areas and will
continue to be necessary in the future. Domestic tensions – particularly
in North Africa – continue to unsettle the markets. As announced at the
beginning of May, due to the ongoing hostilities in Libya, BASF does not
anticipate being able to resume oil production there in 2011.

In the chemical sector, the company anticipates worldwide growth in
chemical production of 5% to 6%, which can differ considerably from
region to region. However, BASF wants to grow faster than the market
in all regions. For the full year 2011, BASF estimates an average
exchange rate of $1.40 per euro. Due to the persistently high and
further rise in the price of oil, the company’s forecast for the annual
average price of Brent crude is being raised by $10 to $110 per barrel.
Bock said: “Based on the positive business growth in the first half, we
remain confident for 2011. Despite the reduction in oil production, we
expect significant sales growth for the BASF Group in 2011. Adjusted
for non-compensable income taxes on oil-producing operations, we
continue to aim to significantly exceed the record 2010 level in EBIT
before special items. We expect to once again earn a high premium on
our cost of capital in 2011.”


Sales in second quarter rose in almost all segments
In the Chemicals segment, sales were significantly higher than in the
second quarter of 2010. Sales prices increased in all divisions,
particularly in the Petrochemicals division. EBIT before special items
was impacted by scheduled and unscheduled plant shutdowns and
almost reached the level of the previous year.
In the Plastics segment, sales volumes were higher in both divisions.
Increased prices also contributed to sales growth. EBIT before special
items improved thanks to higher volumes and margins.
The Performance Products segment posted a strong increase in sales
thanks largely to a considerable contribution from the acquired Cognis
businesses. They also contributed to the increase in EBIT before
special items.

All divisions contributed to the strong growth in sales in the Functional
Solutions segment. EBIT before special items rose slightly compared
with the same quarter of 2010. This was due primarily to the volumerelated
strong contribution from the Catalysts division.
In the Agricultural Solutions segment, sales volumes increased. With
stable prices, sales were at the same level as in the second quarter of
2010 due to the weak U.S. dollar. EBIT before special items slightly
improved.
Sales in the Oil & Gas segment rose slightly compared with the second
quarter of 2010, thanks to higher crude oil and natural gas prices. Due
to the suspension of oil production in Libya at the end of February 2011,
production volumes decreased. Therefore, EBIT before special items
did not reach the level of the second quarter of 2010. However, net
income improved substantially.
First half 2011: Sales and earnings growth in all regions
BASF’s business in the first half of 2011 was positive in all regions.
Growth in sales and earnings was partially double-digit.
Sales and earnings in Europe rose significantly. The Performance
Products segment made a strong contribution to this growth. In the
Chemicals segment, higher raw materials costs were passed on to the
market. Sales also grew substantially in the Plastics segment thanks to
good demand from the automotive industry.
In North America, sales also increased. The inclusion of the Cognis
businesses considerably bolstered sales growth in the Performance
Products segment. The chemicals business developed successfully overall. In the Agricultural Solutions segment, sales declined in
particular as a result of the weaker U.S. dollar and difficult weather
conditions. Earnings were above the level of the first half of 2010.
Sales in Asia Pacific rose thanks to good demand. The Cognis
businesses and price increases due to higher raw materials costs,
especially in the Petrochemicals, Performance Polymers and Catalysts
divisions, contributed to this growth. Earnings improved substantially in
particular due to good margins in the Performance Products segment.
In South America, Africa, Middle East sales and earnings increased
significantly. The inclusion of the Cognis businesses made a significant
contribution to the sales growth. The successful business with crop
protection products contributed to the substantial increase in earnings.
About BASF
BASF is the world’s leading chemical company: The Chemical Company. Its portfolio
ranges from chemicals, plastics, performance products and agricultural products to oil
and gas. As a reliable partner BASF creates chemistry to help its customers in virtually
all industries to be more successful. With its high-value products and intelligent
solutions, BASF plays an important role in finding answers to global challenges such
as climate protection, energy efficiency, nutrition and mobility. BASF posted sales of
about €63.9 billion in 2010 and had approximately 109,000 employees as of the end of
the year. BASF shares are traded on the stock exchanges in Frankfurt (BAS), London
(BFA) and Zurich (AN). Further information on BASF is available on the Internet at
www.basf.com or in its Social Media Newsroom at newsroom.basf.com