UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
November 13, 2001
BASF AKTIENGESELLSCHAFT
(Exact name of Registrant as Specified in its Charter)
BASF CORPORATION
(Translation of Registrant's name into English)
Carl Boach Strasse 38, LUDWIGSHAFEN, GERMANY 67056
(Address of Principal Executive Offices)
Indicate by check mark whether the Registrant files or will file annual
reports under cover Form 20-F or Form 40-F
Form 20-F X Form 40-F
--- ---
Indicate by check mark whether the Registrant by furnishing the
information contained in this Form is also thereby furnishing the information
to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange
Act of 1934.
Yes No X
--- ---
If "Yes" is marked, indicate below the file number assigned to the
Registrant in connection with Rule 12g3-2(b): 82- .
---------
Page 1
3rd Quarter Results
November 13, 2001
Decline in sales and earnings due to a weak economy in the third quarter
Further special items planned in the fourth quarter for measures to ensure
long-term competitiveness
Organizational structures adapted further in preparation for a difficult year
2002
Page 2
BASF GROUP
3rd Quarter Jan.-Sept.
-------------- Change --------------- Change
Million E 2001 2000 in % 2001 2000 in %
----------------------------------------------------------------------------
Sales 7,199 9,196 -21.7 24,817 26,635 -6.8
----------------------------------------------------------------------------
Income from operations
before special items 328 765 -57.1 2,041 2,570 -20.6
----------------------------------------------------------------------------
Income from operations 314 466 -32.6 1,407 2,324 -39.5
----------------------------------------------------------------------------
Extraordinary income 111 - - 6,121 - -
----------------------------------------------------------------------------
Income before taxes
and minority interests 315 322 -2.2 7,157 2,208 224.1
----------------------------------------------------------------------------
Net income 123 101 21.8 6,327 1,013 524.6
----------------------------------------------------------------------------
Earnings per share (E) 0.20 0.17 17.6 10.40 1.65 530.3
----------------------------------------------------------------------------
Earnings per share before
special items (E) 0.05 0.42 -88.1 1.25 1.77 -29.4
----------------------------------------------------------------------------
SALES AND EARNINGS
SALES: Compared with the same period in 2000, reported sales in the third
quarter fell by 21.7% to E7,199 million; cumulative sales in the first nine
months were down 6.8%.
On the basis of ongoing business, i. e. excluding pharmaceuticals, polyolefins,
industrial fibers and textile dyes, sales declined 4.2% in the third quarter. In
the first three quarters, sales from ongoing business were 8.2% higher than in
the same period of the previous year. In particular, the segments Oil & Gas and
Agricultural Products & Nutrition contributed to this sales growth.
FACTORS INFLUENCING SALES IN COMPARISON WITH PREVIOUS YEAR
------------------------------------------------------------
in % 3rd Quarter Jan.-Sept.
------------------------------------------------------------
Volumes +1.5 -0.4
------------------------------------------------------------
Prices -4.8 +1.1
------------------------------------------------------------
Currency -1.5 +0.2
------------------------------------------------------------
Acquisitions/divestitures* -16.9 -7.7
------------------------------------------------------------
Total -21.7 -6.8
------------------------------------------------------------
* Including discontinued operations
EARNINGS: Reported income from operations before special items in the third
quarter was E328 million, a decrease of 57.1% compared with the same period in
2000; in ongoing business, the decline was 47.5%. Sales prices fell
significantly in the third quarter in the majority of our business areas.
Excluding Oil & Gas, prices declined 5.8% in the third quarter and 1.3% in the
first three quarters. This put increased pressure on margins because lower costs
as a result of cheaper raw materials did not compensate for lower sales prices.
The reduced capacity utilization of our production plants also had a negative
impact on earnings.
Compared with the same period in 2000, income from operations before special
items in the first three quarters fell by 20.6% or by 15.1% on the basis of
ongoing business. When taking account of the financial result, third-quarter
income before taxes and special items decreased by 63% to E223 million compared
with 2000; in the first nine months, it declined by 28.3% to E1,675 million.
Earnings per share before special items and excluding the extraordinary income
were E0.05 in the third quarter and E1.25 in the first three quarters.
The extraordinary income from the sale of our pharmaceuticals business increased
by E111 million to E6,121 million as a result of adjustments to the final
purchase price. The extraordinary earnings per share therefore amount to E9.83.
SPECIAL ITEMS 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
----------------------------------------------------------------------------
Million E 2001 2000 2001 2000 2001 2000 2001 2000
----------------------------------------------------------------------------
EARNINGS BEFORE TAXES
AND SPECIAL ITEMS 804 888 648 846 223 603 687
----------------------------------------------------------------------------
SPECIAL ITEMS
- IN INCOME
FROM OPERATIONS -173 44 -447 9 -14 -299 -84
----------------------------------------------------------------------------
- IN FINANCIAL
RESULT - - - 99 -5 18 16
----------------------------------------------------------------------------
EXTRAORDINARY
INCOME 6,010 - - - 111 - -
----------------------------------------------------------------------------
SPECIAL ITEMS/
EXTRAORDINARY
INCOME 5,837 44 -447 108 92 -281 -68
----------------------------------------------------------------------------
INCOME BEFORE
TAXES 6,641 932 201 954 315 322 619
----------------------------------------------------------------------------
Page 3
OUTLOOK
We do not anticipate an improvement in the economic situation or an upturn in
the global economy in the fourth quarter or at the turn of the year. In the
fourth quarter, we expect weaker sales and earnings than in the third quarter.
Sales and income from operations before special items for 2001 as a whole will
be significantly lower than in 2000.
We will continue our restructuring programs to ensure our long-term
competitiveness. In view of the currently weak economic climate, we will also
adapt our production capacities to demand in the short-term. Overall, this will
result in additional special items of approximately E200 million in the fourth
quarter according to current estimates. This figure also contains the cost of
adjusting marketing structures associated with our new organization.
Thanks to the restructuring measures taken in 2001 and our new organization,
which became effective in July, we consider ourselves to be well positioned to
once again continue our long-term upward trend in earnings seen in recent years
when the economic situation improves.
SEGMENTS
------------------------------------------------------------------------------------------------------------------------
Sales Income from Income from
operations before operations
special items
------------------------------------------------------------------------------------------------------------------------
Million E
-------------------------------------- Change Change Change
3RD QUARTER 2001 2000* in % 2001 2000* in % 2001 2000* in %
--------------------------------------------------------------------------------
Chemicals 1,114 1,153 -3.4 119 146 -18.5 119 146 -18.5
------------------------------------------------------------------------------------------------------------------------
Plastics & Fibers 1,944 2,977 -34.7 15 171 -91.2 14 253 -94.5
------------------------------------------------------------------------------------------------------------------------
Performance Products** 1,988 2,176 -8.6 96 136 -29.4 86 138 -37.7
------------------------------------------------------------------------------------------------------------------------
Agricultural Products & Nutrition*** 1,064 1,642 -35.2 -113 -26 . -120 -433 72.3
------------------------------------------------------------------------------------------------------------------------
Oil & Gas 921 946 -2.6 331 357 -7.3 331 378 -12.4
------------------------------------------------------------------------------------------------------------------------
Others 168 302 -44.4 -120 -19 . -116 -16 .
------------------------------------------------------------------------------------------------------------------------
- THEREOF EXPLORATORY/BIOTECHNOLOGY
RESEARCH COSTS -55 -39 -41.0 -55 -39 -41.0
------------------------------------------------------------------------------------------------------------------------
7,199 9,196 -21.7 328 765 -57.1 314 466 -32.6
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
JAN.-SEPT.
------------------------------------------------------------------------------------------------------------------------
Chemicals 3,399 3,281 3.6 349 496 -29.6 324 496 -34.7
------------------------------------------------------------------------------------------------------------------------
Plastics & Fibers 6,257 8,693 -28.0 178 623 -71.4 151 741 -79.6
------------------------------------------------------------------------------------------------------------------------
Performance Products** 6,192 6,311 -1.9 349 481 -27.4 140 481 -70.9
------------------------------------------------------------------------------------------------------------------------
Agricultural Products & Nutrition*** 4,670 4,860 -3.9 350 261 34.1 254 -132 .
------------------------------------------------------------------------------------------------------------------------
Oil & Gas 3,345 2,560 30.7 1,085 844 28.6 1,085 865 25.4
------------------------------------------------------------------------------------------------------------------------
Others**** 954 930 2.6 -270 -135 -100.0 -547 -127 .
------------------------------------------------------------------------------------------------------------------------
- THEREOF EXPLORATORY/BIOTECHNOLOGY
RESEARCH COSTS -162 -114 -42.1 -162 -114 -42.1
------------------------------------------------------------------------------------------------------------------------
24,817 26,635 -6.8 2,041 2,570 -20.6 1,407 2,324 -39.5
------------------------------------------------------------------------------------------------------------------------
* The previous year's figures were adjusted to take account of organizational
changes. In particular, these involve the combination of the Colorants and
Specialty Chemicals divisions to form the Performance Chemicals division as
well as the combination of the Engineering Plastics and Fiber Products
divisions to form the Performance Polymers division. In the course of the
reorganization, certain plants and product groups were assigned to other
divisions in order to further optimize value- adding chains.
** Previously Colorants & Finishing Products
*** Including Pharmaceuticals until the end of February 2001
**** Income from operations for 2001 contains provisions for structural measures
not yet allocated.
CHEMICALS
Compared with the previous year, sales in the Chemicals segment declined 3.4% in
the third quarter to E1,114 million.
The Inorganics division was able to continue the positive trend seen in previous
quarters as a result of growth in the areas of inorganic specialties and
electronic grade chemicals. In the Petrochemicals division, business was
negatively impacted by continuing pressure on margins in all product areas and
declining volume demand at the end of the quarter, which led to a decrease in
sales. Due to weak business in the NAFTA region, the Intermediates division also
sold less than in the same quarter of 2000. Cumulative sales for the segment in
the first three quarters were 3.6% higher than in the previous year, primarily
as a result of growth in the Inorganics division.
Income from operations before special items fell by 18.5% to E119 million in the
third quarter and by 29.6% to E349 million in the first nine months. The
Petrochemicals division was particularly negatively affected as a result of
pressure on prices for cracker products. Earnings were also reduced as a result
of startup costs related to the steam cracker in Port Arthur, Texas, and the oxo
alcohol and plasticizer plant in Kuantan, Malaysia. We do not expect any
substantial improvement in the current business situation in the fourth quarter.
Prices for cracker products remain under pressure.
SALES BY DIVISION
--------------------------------------------------------------------
3rd Quarter Jan.-Sept.
------------ Change ------------- Change
Million E 2001 2000* in % 2001 2000* in %
--------------------------------------------------------------------
Inorganics 176 141 24.8 532 460 15.7
--------------------------------------------------------------------
Petrochemicals 528 591 -10.7 1,545 1,555 -0.6
--------------------------------------------------------------------
Intermediates 410 421 -2.6 1,322 1,266 4.4
--------------------------------------------------------------------
* Previous year's figures adjusted to take account of organizational changes.
Page 4
PLASTICS & FIBERS
Reported sales in this segment were down 34.7% in the third quarter compared
with the same period in 2000. Excluding polyolefins and industrial fibers, sales
in the Plastics & Fibers segment decreased 14.3% in the third quarter and 5.5%
in the first nine months compared with the same periods in 2000. Within the
segment, the Polyurethanes division performed well overall, but was unable to
achieve the same level of third-quarter sales as in 2000. The business situation
remained difficult in the Styrenics division because of low margins. In the
Performance Polymers division, and for fibers and fiber intermediates in
particular, business was hampered by lower demand due to the weak economy and
continuing pressure on prices.
At E15 million, third-quarter income from operations before special items in the
segment was 91.2% lower than in 2000. Compared with the same period in the
previous year, earnings in the first nine months of 2001 decreased 71.4% to E178
million.
In the fourth quarter, we do not expect a substantial improvement in the
currently difficult business situation.
SALES BY DIVISION
---------------------------------------------------------------------
3rd Quarter Jan.-Sept.
------------ Change ------------- Change
Million E 2001 2000* in % 2001 2000* in %
---------------------------------------------------------------------
Styrenics 784 893 -12.2 2,487 2,595 -4.2
---------------------------------------------------------------------
Performance Polymers** 521 660 -21.1 1,744 2,001 -12.8
---------------------------------------------------------------------
Polyurethanes 639 717 -10.9 2,026 2,030 -0.2
---------------------------------------------------------------------
Polyolefins - 707 - - 2,067 -
---------------------------------------------------------------------
* Previous year's figures adjusted to take account of organizational changes.
** Consists primarily of the former Engineering Plastics and Fiber Products
divisions
PERFORMANCE PRODUCTS
Compared with the same periods in 2000, reported sales in this segment were down
8.6% in the third quarter and 1.9% in the first nine months. On the basis of
ongoing business, sales declined by 4.1% in the third quarter and increased by
2.8% in the first nine months compared with the previous year.
At E96 million, third-quarter income from operations before special items was
29.4% lower than in 2000. Persistently weak economic conditions negatively
impacted business in all of the segment's divisions. The structural measures
undertaken in the Functional Polymers division are beginning to show effect.
Earnings in the first nine months in the Performance Products segment amounted
to E349 million, a decline of 27.4% compared with 2000.
There are still no signs of stronger demand in the fourth quarter. Despite a
decrease in raw material costs in some product areas and the cost reduction
measures that we have introduced, income from operations will not improve
significantly.
SALES BY DIVISION
---------------------------------------------------------------------
3rd Quarter Jan.-Sept.
------------ Change ------------- Change
Million E 2001 2000* in % 2001 2000* in %
---------------------------------------------------------------------
Performance Chemicals** 818 962 -15.0 2,542 2,833 -10.3
---------------------------------------------------------------------
Coatings 562 546 2.9 1,729 1,623 6.5
---------------------------------------------------------------------
Functional Polymers*** 608 668 -9.0 1,921 1,855 3.6
---------------------------------------------------------------------
* Previous year's figures adjusted to take account of organizational changes.
** Consists primarily of the former Colorants and Specialty Chemicals
divisions; includes E109 million and E312 million, respectively, from
textile dyes in 2000.
*** Consists primarily of the former Dispersions division
AGRICULTURAL PRODUCTS & NUTRITION
----------------------------------------------------------------------------------------
Sales Income from Income from
operations operations
before
special items
----------------------------------------------------------------------------------------
Million E
----------- Change Change Change
3RD QUARTER 2001 2000 in % 2001 2000 in % 2001 2000 in %
----------------------------------------------------------------------------------------
Agricultural
Products 530 544 -2.6 -144 -185 22.2 -148 -491 69.9
----------------------------------------------------------------------------------------
Fine Chemicals 534 439 21.6 31 7 342.9 28 -38 .
----------------------------------------------------------------------------------------
Pharmaceuticals* - 659 - - 152 - - 96 -
----------------------------------------------------------------------------------------
1,064 1,642 -35.2 -113 -26 . -120 -433 72.3
----------------------------------------------------------------------------------------
JAN.-SEPT.
----------------------------------------------------------------------------------------
Agricultural
Products 2,800 1,820 53.8 274 32 756.3 187 -268 .
----------------------------------------------------------------------------------------
Fine Chemicals 1,506 1,272 18.4 75 37 102.7 37 -11 .
----------------------------------------------------------------------------------------
Pharmaceuticals* 364 1,768 -79.4 1 192 -99.5 30 147 -79.6
----------------------------------------------------------------------------------------
4,670 4,860 -3.9 350 261 34.1 254 -132 .
----------------------------------------------------------------------------------------
* The pharmaceuticals business was sold to Abbott Laboratories on March 2,
2001. The earnings from the sale are shown under extraordinary income.
Page 5
AGRICULTURAL PRODUCTS:
In an environment that was difficult for the entire industry, sales in the third
quarter were 2.6% lower than in the same period of 2000. A major factor has been
the uncertain financial situation in South America, which requires extreme
caution when arranging terms of payment. In the first three quarters, sales
climbed 53.8% to E2,800 million due to acquisitions. Income from operations
before special items in the seasonally weak third quarter was negative, but
nevertheless exceeded the previous year's level of earnings, partially as a
result of exploiting synergy potentials. In the first nine months, earnings
increased by E242 million to E274 million.
Economic conditions will remain difficult in the fourth quarter. Unless the
economic situation in South America deteriorates, we expect to achieve our
full-year sales goal of E3,600 million.
FINE CHEMICALS:
Sales increased 21.6% to E534 million in the third quarter and 18.4% to E1,506
million in the first nine months. Growth was seen in the areas of animal feed
additives, cosmetics raw materials and pharmaceutical ingredients. The
acquisition of Takeda's vitamins business accounted for approximately 10
percentage points of the increase in sales in the first nine months.
Compared with 2000, income from operations before special items increased in the
third quarter and also on a cumulative basis in the first nine months. Overall,
we expect a positive development of our business excluding special items in the
fourth quarter.
OIL AND GAS
Third-quarter sales in the Oil & Gas segment declined 2.6% to E921 million. This
was primarily due to the fact that the average price of crude oil was 17% lower
than in the previous year. Compared with the same period in 2000, sales
increased by 30.7% to E3,345 million in the first nine months as a result of a
considerable increase in sales in the first half of the year. We achieved higher
sales in the areas of oil and gas production as well as in natural gas trading.
Income from operations was lower than in the last two quarters and declined by
12.4% to E331 million compared with 2000. In the first nine months, income from
operations was up 25.4% at E1,085 million. Income taxes on oil production, which
are non-deductible under the German tax system and which are recorded as tax
expenses, amounted to E131 million in the third quarter and E409 million in the
first nine months. Income from operations in the fourth quarter is likely to be
lower than in the previous quarters as a result of a further decline in crude
oil prices.
REGIONS
-----------------------------------------------------------------------------------------------------------
Location of company Sales Income from Income from
operations before operations
special items
-----------------------------------------------------------------------------------------------------------
Million E
----------- Change Change Change
3RD QUARTER 2001 2000 in % 2001 2000 in % 2001 2000 in %
-----------------------------------------------------------------------------------------------------------
Europe 4,142 5,590 -25.9 430 674 -36.2 434 556 -21.9
-----------------------------------------------------------------------------------------------------------
- THEREOF GERMANY 2,801 3,662 -23.5 311 478 -34.9 309 449 -31.2
-----------------------------------------------------------------------------------------------------------
North America (NAFTA) 1,642 2,174 -24.5 -183 -21 . -201 -149 -34.9
-----------------------------------------------------------------------------------------------------------
South America 503 583 -13.7 51 50 2.0 51 32 59.4
-----------------------------------------------------------------------------------------------------------
Asia, Pacific Area, Africa 912 849 7.4 30 62 -51.6 30 27 11.1
-----------------------------------------------------------------------------------------------------------
7,199 9,196 -21.7 328 765 -57.1 314 466 -32.6
-----------------------------------------------------------------------------------------------------------
JAN.-SEPT.
-----------------------------------------------------------------------------------------------------------
Europe 14,878 16,641 -10.6 2,170 1,932 12.3 1,951 1,873 4.2
-----------------------------------------------------------------------------------------------------------
- THEREOF GERMANY 10,212 10,745 -5.0 1,518 1,277 18.9 1,403 1,319 6.4
-----------------------------------------------------------------------------------------------------------
North America (NAFTA) 6,027 6,341 -5.0 -266 290 . -458 171 .
-----------------------------------------------------------------------------------------------------------
South America 1,387 1,378 0.7 91 163 -44.2 88 130 -32.3
-----------------------------------------------------------------------------------------------------------
Asia, Pacific Area, Africa 2,525 2,275 11.0 46 185 -75.1 46 150 -69.3
-----------------------------------------------------------------------------------------------------------
24,817 26,635 -6.8 2,041 2,570 -20.6 1,407* 2,324 -39.5
-----------------------------------------------------------------------------------------------------------
* Including provisions for structural measures not yet allocated
The sales and earnings figures in all regions reflect the weakness in the
economy. Compared with 2000, reported sales in Europe decreased 25.9% in the
third quarter and 10.6% in the first nine months. Sales from ongoing business
declined 6.3% in the third quarter and increased 6.2% in the first nine months
compared with the same periods in the previous year.
In North America (NAFTA), reported sales fell by 24.5% in the third quarter
compared with 2000; sales from ongoing business declined by 10.6%. In the first
nine months, reported sales were down 5.0%, but sales from ongoing business were
up 5.5%. Higher sales in Asia are due to the inclusion of additional companies
in the scope of consolidation.
With the exception of South America, income from operations before special items
declined significantly in all regions in the third quarter. In the first nine
months, earnings in Europe increased by 12.3% compared with 2000 as a result of
the higher contribution from Oil & Gas. In the remaining regions, earnings fell
considerably due to the weak economic situation. The increasingly difficult
economic conditions resulted in a loss in North America.
Page 6
EMPLOYEES
Since the end of the first half year, the number of employees has increased by
1,027 from 92,249 to 93,276. This increase is due to extension of the scope of
consolidation and to acquisitions. The decline of 9,997 since the end of 2000 is
largely due to the sale of our pharmaceuticals business.
NUMBER OF EMPLOYEES
-------------------------------------------------------------------
3rd Quarter Jan.-Sept. Year
--------------- --------------- ----
2001 2000 2001 2000 2000
-------------------------------------------------------------------
End of period 93,276 108,834 93,276 108,834 103,273
-------------------------------------------------------------------
Average 93,323 109,089 95,411 107,946 105,784
-------------------------------------------------------------------
FINANCE
In the first nine months of 2001, cash provided by operating activities was
E1,739 million, 8.7% less than in the same period in 2000. In the third quarter,
funds were released from current assets. Additional funds committed for the
first nine months were therefore reduced to E530 million and were considerably
lower than in 2000.
After deducting ongoing capital expenditures, cash provided by investing
activities amounted to E5,290 million, in particular as a result of the sale of
our pharmaceuticals business.
We used this cash inflow to reduce our financial indebtedness, which amounted to
E2,883 million as of September 30, 2001.
Up to the end of the third quarter, we bought back 21.7 million shares for E934
million. This corresponds to an average price of E43.05 per share. As of
September 30, 2001, the number of shares outstanding was 592.5 million.
Cash and cash equivalents increased by E228 million. Together with securities,
liquid funds amounted to E1,217 million as of September 30. This is E347 million
more than at the end of 2000.
CONSOLIDATED STATEMENTS OF CASH FLOW JAN.-SEPT.
-----------------------------------------------------------------------------
Million E 2001 2000
-----------------------------------------------------------------------------
Net income* 346 1,013
-----------------------------------------------------------------------------
Depreciation of fixed assets 1,950 2,132
-----------------------------------------------------------------------------
Changes in net current assets -530 -1,145
-----------------------------------------------------------------------------
Miscellaneous items -27 -95
-----------------------------------------------------------------------------
CASH PROVIDED BY OPERATING ACTIVITIES 1,739 1,905
-----------------------------------------------------------------------------
Addition to tangible and intangible fixed assets -1,920 -2,022
-----------------------------------------------------------------------------
Acquisitions/divestitures, net 7,270 -5,526
-----------------------------------------------------------------------------
Financial investments and other items -60 297
-----------------------------------------------------------------------------
CASH PROVIDED BY INVESTING ACTIVITIES 5,290 -7,251
-----------------------------------------------------------------------------
Proceeds from capital increases -784 -562
-----------------------------------------------------------------------------
Changes in financial indebtedness -4,762 6,290
-----------------------------------------------------------------------------
Dividends -1,255 -739
-----------------------------------------------------------------------------
CASH USED IN/FROM FINANCING ACTIVITIES -6,801 4,989
-----------------------------------------------------------------------------
Net changes in cash and cash equivalents 228 -357
-----------------------------------------------------------------------------
Initial cash and cash equivalents and other changes 606 1,036
-----------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS 834 679
-----------------------------------------------------------------------------
Securities held as current assets 383 385
-----------------------------------------------------------------------------
LIQUID FUNDS AS SHOWN ON THE BALANCE SHEET 1,217 1,064
-----------------------------------------------------------------------------
* Excluding extraordinary income.
FORWARD-LOOKING STATEMENTS
THIS REPORT CONTAINS FORWARD-LOOKING STATEMENTS UNDER THE U.S. PRIVATE
SECURITIES LITIGATION REFORM ACT OF 1995. THESE STATEMENTS ARE BASED ON CURRENT
EXPECTATIONS, ESTIMATES, AND PROJECTIONS OF BASF MANAGEMENT AND CURRENTLY
AVAILABLE INFORMATION. THEY ARE NOT GUARANTEES OF FUTURE PERFORMANCE, INVOLVE
CERTAIN RISKS AND UNCERTAINTIES THAT ARE DIFFICULT TO PREDICT AND ARE BASED ON
ASSUMPTIONS AS TO FUTURE EVENTS THAT MAY OR MAY NOT PROVE TO BE ACCURATE. MANY
FACTORS COULD CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF BASF TO
BE MATERIALLY DIFFERENT FROM THOSE THAT MAY BE EXPRESSED OR IMPLIED BY SUCH
STATEMENTS. SUCH FACTORS INCLUDE THOSE DISCUSSED IN BASF'S FORM 20-F FILED WITH
THE SECURITIES AND EXCHANGE COMMISSION. [THE ANNUAL REPORT ON FORM 20-F IS ALSO
AVAILABLE ON THE INTERNET AT WWW.BASF.COM.] WE DO NOT ASSUME ANY OBLIGATION TO
UPDATE THE FORWARD-LOOKING STATEMENTS CONTAINED IN THIS REPORT.
Page 7
FINANCIAL STATEMENT OF BASF GROUP (ABRIDGED VERSION)
CONSOLIDATED STATEMENTS OF INCOME Million E
3rd Quarter Jan.-Sept.
-------------- Change --------------- Change
2001 2000 in % 2001 2000 in %
------------------------------------------------------------------------------------------------
SALES, NET OF NATURAL GAS TAXES 7,199 9,196 -21.7 24,817 26,635 -6.8
------------------------------------------------------------------------------------------------
Cost of sales 4,914 5,927 -17.1 16,679 17,068 -2.3
------------------------------------------------------------------------------------------------
GROSS PROFIT ON SALES 2,285 3,269 -30.1 8,138 9,567 -14.9
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
Selling expenses 1,199 1,489 -19.5 3,868 4,256 -9.1
------------------------------------------------------------------------------------------------
General and administrative expenses 167 211 -20.9 488 559 -12.7
------------------------------------------------------------------------------------------------
Research and development expenses 296 410 -27.8 966 1,111 -13.1
------------------------------------------------------------------------------------------------
Other operating income 39 409 -90.5 562 824 -31.8
------------------------------------------------------------------------------------------------
Other operating expenses 348 1,102 -68.4 1,971 2,141 -7.9
------------------------------------------------------------------------------------------------
INCOME FROM OPERATIONS 314 466 -32.6 1,407 2,324 -39.5
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
Financial result -110 -144 23.6 -371 -116 .
------------------------------------------------------------------------------------------------
INCOME FROM ORDINARY ACTIVITIES 204 322 -36.6 1,036 2,208 -53.1
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
Extraordinary income 111 - - 6,121 - -
------------------------------------------------------------------------------------------------
INCOME BEFORE TAXES AND MINORITY INTERESTS 315 322 -2.2 7,157 2,208 224.1
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
Income taxes 197 208 -5.3 832 1,164 -28.5
------------------------------------------------------------------------------------------------
Minority interests -5 13 . -2 31 .
------------------------------------------------------------------------------------------------
NET INCOME 123 101 21.8 6,327 1,013 524.6
------------------------------------------------------------------------------------------------
EARNINGS PER SHARE (E) 0.20 0.17 17.6 10.40 1.65 530.3
------------------------------------------------------------------------------------------------
- Thereof extraordinary income 0.18 - - 9.83 - -
------------------------------------------------------------------------------------------------
NUMBER OF SHARES IN MILLIONS (WEIGHTED) 603 613 -1.6 608 613 -0.8
------------------------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEETS Million E
ASSETS Sept. 30 Dec. 31
--------------- Change ------- Change
2001 2000 in % 2000 in %
----------------------------------------------------------------------------------------
FIXED ASSETS 21,054 22,593 -6.8 21,769 -3.3
----------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------
Inventories 4,904 5,375 -8.8 5,211 -5.9
----------------------------------------------------------------------------------------
Accounts receivable, trade 6,151 6,947 -11.5 6,068 1.4
----------------------------------------------------------------------------------------
Miscellaneous receivables 2,847 3,576 -20.4 3,369 -15.5
----------------------------------------------------------------------------------------
DEFERRED TAXES 1,283 1,337 -4.0 1,270 1.0
----------------------------------------------------------------------------------------
Cash and cash equivalents 1,217 1,064 14.4 870 39.9
----------------------------------------------------------------------------------------
CURRENT ASSETS 16,402 18,299 -10.4 16,788 -2.3
----------------------------------------------------------------------------------------
TOTAL ASSETS 37,456 40,892 -8.4 38,557 -2.9
----------------------------------------------------------------------------------------
STOCKHOLDERS' EQUITY AND LIABILITIES Sept 30 Dec. 31
--------------- Change ------- Change
2001 2000 in % 2000 in %
----------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------
Suscribed capital and capital surplus 4,408 4,265 3.4 4,301 2.5
----------------------------------------------------------------------------------------
Retained earnings and other equity 13,351 9,811 36.1 9,513 40.3
----------------------------------------------------------------------------------------
Minority interests 375 502 -25.3 481 -22.0
----------------------------------------------------------------------------------------
STOCKHOLDERS' EQUITY 18,134 14,578 24.4 14,295 26.9
----------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------
Provisions 9,827 9,772 0.6 9,543 3.0
----------------------------------------------------------------------------------------
Financial indebtedness 2,883 7,798 -63.0 7,892 -63.5
----------------------------------------------------------------------------------------
Other liabilities 6,612 8,744 -24.4 6,827 -3.1
----------------------------------------------------------------------------------------
LIABILITIES 19,322 26,314 -26.6 24,262 -20.4
----------------------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY AND LIABILITIES 37,456 40,892 -8.4 38,557 -2.9
----------------------------------------------------------------------------------------
The interim balance sheet has not been audited.
Page 8
Publisher:
BASF Aktiengesellschaft
Corporate Department Communications
67056 Ludwigshafen
Germany
YOU CAN ORDER THIS AND OTHER BASF PUBLICATIONS
- BY TELEPHONE: +49 621 60-0
- BY FAX: +49 6021 704-431
- BY E-MAIL: MEDIEN-SERVICE@BASF-AG.DE
- ON THE INTERNET: WWW.BASF.DE/MEDIAORDERS
IMPORTANT DATES CONTACTS
--------------------------------------------------------------------------------
March 14, 2002 Corporate Media Relations:
Financial Results 2001 Michael Grabicki
Tel.: +49 621 60-99938
April 30, 2002 Fax: +49 621 60-20129
Annual Meeting
Investor Relations:
Interim Report Carolin Weitzmann
First Quarter 2002 Tel.: +49 621 60-48230
Fax: +49 621 60-22500
August 8, 2002
Interim Report Second Quarter 2002 Internet:
www.basf.com
BASF Aktiengesellschaft
67056 Ludwigshafen
Deutschland
Page 9