6-K 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
August 8, 2002
BASF AKTIENGESELLSCHAFT
(Exact name of Registrant as Specified in its Charter)
BASF CORPORATION
(Translation of Registrant's name into English)
Carl Bosch 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
"This Report on Form 6-K contains a press release dated August 08, 2002 on
BASF Aktiengesellschaft's Second-Quarter Results as well as the report on the
Second-Quarter Results dated August 08, 2002"
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Current Report to be signed on its behalf by
the undersigned, thereunto duly authorized.
BASF Aktiengesellschaft
Date: August 08, 2002 By: /s/ Kurt Leidner
------------------------------------
Name: Kurt Leidner
Title: Director Communications
Ludwigshafen site
By: /s/ Christian Schubert
------------------------------------
Name: Christian Schubert
Title: Director Communications
BASF Group
August 8, 2002
Michael Grabicki
P 247e
Phone: +49 621 60-99938
Fax: +49 621 60-20129
michael.grabicki@basf-ag.de
BASF CONFIRMS ITS CONFIDENT OUTLOOK FOR 2002
>> Higher earnings from stable sales in the second quarter
>> Improved earnings in the Chemicals, Plastics & Fibers and
Performance Products segments
>> Outlook 2002: EBIT before special items higher than in 2001
"We are not idly waiting for an upturn, but are acting now. The structural
measures that we were early in implementing are showing their effects. Our
cost-reduction program is proceeding according to plan. Our strategy is the
right one." This was Dr. Jurgen F. Strube's summary of BASF's second-quarter
results.
At E8.4 billion, sales were maintained at the previous year's level.
EBIT (income from operations) before special items of E822 million was
almost 10 percent higher than in the second quarter of 2001 EBIT before
special items was also higher than in the first quarter of 2002. Compared
with the same period in 2001, BASF also regained ground in terms of
cumulative sales, which amounted to E16.6 billion in the period from
January to June 2002. When sales from the pharmaceuticals business are
excluded this is only 3.7 percent less than in the strong first half of 2001.
In the first six months of this year, EBIT before special items was
E1.6 billion, or 4.3 percent less than in the same period in 2001.
Earnings per share were E0.86 in the second quarter of 2002 compared
with E0.02 in the same period of 2001. This reflects the much lower
level of special items in the second quarter of 2002.
In terms of performance, BASF shares were number 2 in Germany's DAX index and
in the EURO STOXX index in the first six months of 2002. Strube interpreted
this as a sign of the confidence placed in BASF to succeed in the face of
difficult conditions and despite the persistently weak economic climate.
"In 2002 overall, we aim to achieve higher EBIT before special items than in
2001 on the basis of a roughly similar level of sales," said Strube, summarizing
his expectations for 2002. Factors of uncertainty continued to be global
security and its effects on oil prices, continuing stock market turbulence and
consumer confidence.
The moderate upturn in business that BASF started experiencing in March
continued in the second quarter and was supported by good volume demand in
particular. The strongest improvement in earnings was seen in the Chemicals,
Plastics & Fibers and Performance Products segments. The Agricultural Products
division was particularly negatively affected by poor weather conditions in
North America. Earnings in the Oil & Gas segment were down on 2001 due to a
lower oil price.
TREND REVERSED IN EUROPE, NAFTA AND ASIA; SOUTH AMERICA UNDER PRESSURE
In Europe, the NAFTA region and Asia, BASF is once again seeing an upward trend
in its business.
In Europe, BASF posted total sales in the second quarter of E4.4
billion, or 1 percent less than in the same quarter of 2001. By comparison,
sales declined by 16 percent in the first quarter of this year. EBIT before
special items in Europe was E679 million in the second quarter, or 15
percent lower than in the same period in 2001. The oil and gas business
contributed 39 percent to earnings.
Business picked up in the NAFTA region. Sales were slightly higher in the
second quarter than in the first quarter and were 6 percent up on the second
quarter of 2001. EBIT before special items was E77 million in the
second quarter. BASF is confident that it can achieve a turnaround in North
America for the full year.
In South America, sales declined by 26 percent in the second quarter. The
difficult situation experienced in the first quarter therefore remains
unchanged. Earnings also declined further and the company posted a loss of
E29 million in this region in the second quarter.
In Asia Pacific, BASF performed better than in the second quarter of 2001, with
sales up 11 percent on last year. In particular, this increase in sales stemmed
from the Plastics & Fibers segment and the Petrochemicals division. Earnings
were E105 million higher compared with the same period in 2001.
COMPETITIVE POSITION STRENGTHENED THROUGH RESOLUTE STRATEGY
IMPLEMENTATION
Strube stressed that BASF would adhere to its long-term strategy of adding value
through growth and innovation. In doing so, the company will expand profitable
business areas, strengthen its long-term competitiveness, optimize its Verbund
structures and invest in growth markets. In addition, BASF will adapt its
structures and processes to make them more flexible and closer to the market.
Efforts to permanently reduce fixed costs are proving successful, said Strube.
In the previous year, BASF already made cost savings of E250 million. In
the first six months of 2002 further plants and sites were closed in the course
of restructuring measures. These include a vitamin E plant in Wyandotte,
Michigan, and a Styrodur plant in Antwerp, Belgium.
In Europe, BASF is restructuring its plasticizers production. Plants in
Tarragona, Spain, will be shut down and the company will supply its markets from
world-scale plants in Feluy, Belgium, and Ludwigshafen, Germany.
On this basis, BASF intends achieving its goal of reducing costs by E1
billion by the end of 2003.
BASF is the world's leading chemical company. It aims to increase and sustain
its corporate value through growth and innovation. BASF offers its customers a
range of high-performance products, including chemicals, plastics, coatings
systems, dispersions, agricultural products, fine chemicals as well as crude oil
and natural gas. BASF's distinctive approach to integration, known in German as
"verbund," is its strength. It enables the company to achieve cost leadership
and gives it a decisive competitive advantage in the long term. BASF acts in
accordance with the principles of sustainable development. In 2001, BASF had
sales of E32.5 billion (circa $29 billion) and over 90,000 employees
worldwide. BASF shares are traded on the stock exchanges in Frankfurt (BAS),
London (BFA), New York (BF), Paris (BA) and Zurich (BAS). Further information on
BASF is available on the internet at www.basf.com.
The following information will be available on the Internet from today (August
8, 2002):
INTERIM REPORT (FROM 7:30 A.M. CEST)
WWW.BASF.DE/INTERIMREPORT
PRESS RELEASE (FROM 7:30 A.M. CEST)
WWW.BASF.DE/PRESSRELEASE
SPEECH BY DR. JURGEN F. STRUBE - LIVE TRANSMISSION (FROM 10:00 A.M. CEST)
WWW.BASF.DE/PCON
SPEECH BY DR. JURGEN F. STRUBE - PRINTED VERSION (FROM 10:00 A.M. CEST)
WWW.BASF.DE/PRESSCONFERENCE
YOU CAN DOWNLOAD PHOTOS OF BASF FROM THE INTERNET AT: WWW.BASF.DE/PRESSPHOTOS
Klaus Peter Lobbe, member of BASF's Board of Executive Directors, will report on
business performance and outlook in the NAFTA region at 4:00 p.m. CEST. Visit
HTTP://RICHMEDIA.CONFERENCING.COM/BASF for more information
If you have technical questions regarding the use of our Internet pages, please
contact Jurgen Schwerdtfeger on +49 621 60-99400.
FORWARD-LOOKING STATEMENTS
This release 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 upon
assumptions as to future events that 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. We do not assume any obligation to
update the forward-looking statements contained in this release.
Second-Quarter Results
August 8, 2002
EBIT before special items in the second quarter
up almost 10 % on the previous year
Improved earnings in Chemicals, Plastics & Fibers and Performance Products;
difficult environment for Agricultural Products
Outlook for 2002: Increase in EBIT before special items expected
BASF Group
2nd Quarter Change 1st Quarter Change
Million euro 2002 2001 in % 2002 2001 in %
Sales 8,379 8,329 0.6 16,618 17,618 (5.7)
Income from operations
before special items 822 751 9.5 1,640 1,713 (4.3)
Income from
operations (EBIT) 817 304 168.8 1,631 1,093 49.2
Income from operations
before depreciation and
amortization (EBITDA) 1,411 1,016 38.9 2,843 2,415 17.7
Extraordinary income - - - - 6,010 -
Income before taxes
and minority interests 825 201 310.4 1,663 6,842 (75.7)
Net income 502 11 . 1,058 6,204 (82.9)
Earnings per share
- ordinary E 0.86 0.02 . 1.81 0.55 229.1
- extraordinary E - - - - 9.61 -
Sales and earnings
Sales: Sales in the second quarter increased slightly by 0.6 % to euro 8,379
million compared with the same period in 2001. This was primarily due to a
significant increase in sales volumes. The level of selling prices, however,
Page 1
continued to remain significantly below last years level. Currency effects
resulted in particular from the devaluation of the U.S. dollar, South American
currencies and the Japanese yen against the euro. Overall, BASF regained ground
in the first six months compared with the same period in 2001: Excluding sales
of euro 364 million from the pharmaceuticals business in the first quarter of
2001, the decline in sales in the first half of 2002 was only 3.7 %.
Factors influencing sales in comparison with previous year
in % 2nd Quarter 1st Half
Volumes +9.1 +4.6
Prices (8.2) (8.5)
Currency (1.8) (0.6)
Acquisitions/divestitures* +1.5 (1.2)
Total +0.6 (5.7)
*) Including discontinued operations
Earnings: Second-quarter income from operations before special items climbed
by 9.5 % due to improved earnings in the Chemicals, Plastics & Fibers and
Performance Products segments despite a renewed increase in the price of raw
materials. A positive contribution was made by the restructuring and
cost-reduction measures introduced in 2001. As a result of the strong second
quarter, earnings in the first half of 2002 declined by only 4.3 % compared
with the same period in 2001. Earnings were negatively affected above all by
lower average prices for crude oil and increased competition in the North
American market for agricultural products.
Compared with the same periods in 2001, income from operations after special
items was significantly higher in the second quarter and first half of 2002
due to a much lower level of special items. The financial result in the
second quarter was positive. Due in particular to the earnings posted by
Basell, income from financial assets increased
Page 2
significantly to euro 77 million following a loss of euro 27 million in the
previous year. The interest result of minus euro 69 million was at the same
level as in the previous year. Second-quarter income before taxes and
minority interests net of special items increased 28 %. The average tax rate
was 36 % in the second quarter and 33 % in the first six months. Net income
of euro 502 million in the second quarter and euro 1,058 million in the first
half of 2002 even exceeded the level in the successful year 2000.
Special items
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Million euro 2002 2001 2002 2001 2002 2001 2002 2001
Special items
- in income
from operations (4) (173) (5) (447) (14) (442)
- in financial
result 114 - - - (5) (68)
Total 110 (173) (5) (447) (19) (510)
Outlook
For 2002 as a whole, we anticipate sales at the previous years level and
improved income from operations before special items. In view of the level of
incoming orders, we currently expect a slight increase in sales and a
significant increase in income from operations before special items in the third
quarter of the year compared with the same period of 2001. Improved margins as a
result of the sales price increases made in some business areas at the end of
the second quarter will contribute toward this.
Page 3
Segments
Sales Income from Income from
operations before operations
special items
Change Change Change
Million euro 2002 2001* in % 2002 2001* in % 2002 2001* in %
2nd Quarter
Chemicals 1,398 1,163 20.2 161 121 33.1 161 104 54.8
Plastics &
Fibers 2,243 2,159 3.9 211 70 201.4 211 62 240.3
Performance
Products 2,077 2,112 (1.7) 210 127 65.4 210 (54) .
Agricultural
Products &
Nutrition 1,495 1,523 (1.8) 130 165 (21.2) 127 151 (15.9)
Oil & Gas 879 981 (10.4) 292 378 (22.8) 292 378 (22.8)
Other** 287 391 (26.6) (182) (110) (65.5) (184) (337) 45.4
thereof
exploratory/
biotechnology
research costs - - - 50 44 13.6 50 44 13.6
8,379 8,329 0.6 822 751 9.5 817 304 168.8
1st Half
Chemicals 2,601 2,285 13.8 272 230 18.3 270 205 31.7
Plastics &
Fibers 4,218 4,313 (2.2) 309 163 89.6 306 137 123.4
Performance
Products 4,060 4,199 (3.3) 325 252 29.0 329 53 520.8
Agricultural
Products &
Nutrition 3,037 3,611 (15.9) 364 464 (21.6) 358 375 (4.5)
Oil & Gas 2,105 2,424 (13.2) 576 754 (23.6) 576 754 (23.6)
Other** 597 786 (24.0) (206) (150) (37.3) (208) (431) 51.7
thereof
exploratory/
biotechnology
research costs - - - 99 111 (10.8) 99 111 (10.8)
16,618 17,618 (5.7) 1,640 1,713 (4.3) 1,631 1,093 49.2
Page 4
*) Previous year's figures adjusted to take account of organizational
changes.
**) Provisions for structural measures not yet allocated were included in the
second quarter of 2001. In addition, the figures contain earnings/ losses
(-95, in previous year -33) from foreign currency financial indebtedness
which is not allocated to the segments as well as currency positions which
are macro-hedged. Their positive market values will only be realized at
maturity in the course of the year.
Chemicals
Sales in the Chemicals segment rose 20.2 % in the second quarter to
euro 1,398 million (volumes +28.3 %, prices/currency -11.7 %). The new steam
cracker in Port Arthur, Texas, which started up at the end of 2001
contributed to the large increase in volumes. Second-quarter income from
operations before special items was euro 161 million, euro 40 million or 33 %
higher compared with the same period of the previous year. Sales in the
Inorganics division in the second quarter did not quite reach the same level
as in 2001. Earnings were improved despite the negative impact of scheduled
shutdowns and inspection of plants in Ludwigshafen and Antwerp. Earnings in
catalysts developed positively. In the Petrochemicals division, good volume
demand in the second quarter led to high steam cracker capacity utilization
and to an improvement in margins. Sales and earnings therefore increased. In
the Intermediates division, sales in the second quarter were at the previous
years level. Earnings declined due to increases in the cost of some raw
materials.
Page 5
Sales by division
2nd Quarter 1st Half
Change Change
Million euro 2002 2001* in % 2002 2001* in %
Inorganics 182 186 (2.2) 351 377 (6.9)
Petrochemicals 766 525 45.9 1,376 1,017 35.3
Intermediates 450 452 (0.4) 874 891 (1.9)
*) Previous years figures adjusted to take account of organizational
changes.
Plastics & Fibers
In the Plastics & Fibers segment, second-quarter sales
increased by 3.9 % to euro 2,243 million (volumes +9.6 %, prices/currency
-6.5 %). Sales in the first half of 2002 were 2.2 % lower than in the same
period of 2001. Income from operations before special items in the second
quarter was euro 211 million, compared with euro 70 million in the same
period of the previous year. High capacity utilization rates in all divisions
and good demand were the main reason for the increase. Sales in the Styrenics
division increased 5 % and income from operations improved compared with the
very weak second quarter of the previous year. This was mainly due to price
adjustments to reflect severe increases in the cost of raw materials, in
particular for polymers, and the cost-reduction measures introduced in 2001.
In the Performance Polymers division, higher sales volumes and price
increases - in particular for fiber intermediates - led to higher second-
quarter sales. A reduction in fixed costs as a result of restructuring
measures and good capacity utilization improved earnings. Business continued
to develop positively in the Polyurethanes division in the second quarter. In
particular, sales were boosted due to higher sales volumes for basic
materials in Asia and the nafta region. The higher utilization of capacities
established in recent years resulted in an
Page 6
increase in earnings.
Sales by division
2nd Quarter 1st Half
Change Change
Million euro 2002 2001* in % 2002 2001* in %
Styrenics 888 846 5.0 1,630 1,703 (4.3)
Performance Polymers 628 612 2.6 1,169 1,223 (4.4)
Polyurethanes 727 701 3.7 1,419 1,387 2.3
*) Previous years figures adjusted to take account of organizational
changes.
Performance Products
Second-quarter sales in this segment did not quite reach the previous years
level and declined 1.7% to euro 2,077 million (volumes +5.1 %, prices/ currency
-7.3 %). In the second quarter, income from operations before special items
climbed 65 % to euro 210 million. Among other things, this was due to improved
volumes in most business areas as well as cost reductions following
restructuring measures. Second-quarter sales in the Performance Chemicals
division were at the same level as in 2001. Earnings improved due to positive
business development in almost all business areas and the improvement of our
cost structure. In the Coatings division, sales declined by 4.5 % in the second
quarter. Reasons for this decline included lower sales in South America as a
result of the weakness of local currencies. Nevertheless, second-quarter
earnings in 2002 were considerably higher than in the same period of 2001. There
was increased demand in the Functional Polymers division in the second quarter.
Earnings were considerably higher than in the weak second quarter of 2001.
Page 7
Sales by division
2nd Quarter 1st Half
Change Change
Million euro 2002 2001* in % 2002 2001* in %
Performance Chemicals 856 857 (0.1) 1,704 1,719 (0.9)
Coatings 567 594 (4.5) 1,098 1,167 (5.9)
Functional Polymers 654 661 (1.1) 1,258 1,313 (4.2)
*) Previous years figures adjusted to take account of organizational
changes.
Agricultural Products & Nutrition
Sales Income from Income from
operations operations
before
special items
Change Change Change
Million euro 2002 2001 in % 2002 2001 in % 2002 2001 in %
2nd Quarter
Agricultural
Products 1,003 1,038 (3.4) 108 133 (18.8) 108 126 (14.3)
Fine Chemicals 492 485 1.4 22 32 (31.3) 19 25 (24.0)
Pharmaceuticals* - - - - - - - - -
1,495 1,523 (1.8) 130 165 (21.2) 127 151 (15.9)
1st Half
Agricultural
Products 2,041 2,270 (10.1) 321 418 (23.2) 321 335 (4.2)
Fine Chemicals 996 977 1.9 43 45 (4.4) 37 10 270.0
Pharmaceuticals* - 364 - - 1 - - 30 -
3,037 3,611 (15.9) 364 464 (21.6) 358 375 (4.5)
*) The pharmaceuticals business was sold to Abbott Laboratories
on March 2, 2001.
Agricultural Products: Sales in the second quarter were below the previous years
level. The main reasons for this were unfavorable weather conditions in the
United States and a resulting increase in competitive pressure
Page 8
in the herbicides business. Our business was also negatively impacted by the
weak economic situation in South America. We increased sales in Europe and Asia.
Growth in the area of fungicides, in particular the F 500 range, as well as the
realization of additional synergies were unable to offset a decline in income
from operations before special items, which decreased by 18.8 % in the second
quarter and by 23.2 % in the first six months compared with the same periods of
2001.
Fine Chemicals: The slight increase in demand continued. Volume growth was
seen in all business areas with the exception of cosmetics raw materials. Due to
weaker prices for vitamins, sales increased only 1.4 % in the second quarter and
close to 2 % in the first half of 2001 compared to the previous year. Income
from operations before special items remained below the previous years level in
the second quarter and almost achieved the previous years level in the first six
months.
Oil & Gas
In the Oil & Gas segment, sales in the second quarter declined by 10.4 %
compared with the same period in 2001 to euro 879 million (volumes +14 %,
prices/currency - 24 %). Volumes increased in the natural gas business. The
sales decline is primarily due to a decrease in the average price of crude oil
by approximately $2.3/barrel. In addition, sales were negatively affected by the
weakening of the U.S. dollar against the euro. Compared with the same period of
2001, second-quarter income from operations was 22.8 % lower at euro 292
million. Earnings from the oil business declined, while earnings from the
natural gas business improved. Foreign income taxes for oil production, which
are non-compensable with German taxes, amounted to euro 101 million in the
second quarter
Page 9
(2001: euro 157 million) and euro 183 million in the first six months of 2002
(2001: euro 278 million). These are included in tax expenses.
Regions
Location of company Sales Income from Income from
operations before operations
special items
Change Change Change
Million euro 2001 2000 in % 2001 2000 in % 2001 2000 in %
2nd Quarter
Europe 4,826 4,877 (1.0) 679 802 (15.3) 678 605 12,1
- thereof
Germany 3,297 3,372 (2.2) 483 599 (19.4) 482 500 (3.6)
North America
(NAFTA) 2,261 2,179 3.8 77 (70) . 73 (100) .
South America 331 456 (27.4) (29) 29 . (29) 29 .
Asia,
Pacific Area,
Africa 961 817 17.6 95 (10) . 95 (10) .
8,379 8,329 0.6 822 751 9.5 817 304* 168.8
1st Half
Europe 9,726 10,736 (9.4) 1,446 1,751 (17.4) 1,445 1,528 (5.4)
- thereof
Germany 6,802 7,411 (8.2) 1,051 1,226 (14.3) 1,050 1,113 (5.7)
North America
(NAFTA) 4,381 4,385 (0.1) 105 (83) . 97 (257) .
South America 640 884 (27.6) (35) 40 . (35) 37 .
Asia,
Pacific Area,
Africa 1,871 1,613 16.0 124 5 . 124 5 .
16,618 17,618 (5.7) 1,640 1,713 (4.3) 1,631 1,093* 49.2
*) Including provisions for structural measures not yet allocated.
Page 10
Sales based on location of customer
2nd Quarter 1st Half
Change Change
Million euro 2002 2001 in % 2002 2001 in %
Europe 4,428 4,490 (1.4) 8,993 9,936 (9.5)
- thereof
Germany 1,686 1,756 (4.0) 3,580 4,045 (11.5)
North America
(NAFTA) 2,251 2,124 6.0 4,339 4,279 1.4
South America 405 550 (26.4) 785 1,074 (26.9)
Asia,
Pacific Area,
Africa 1,295 1,165 11.2 2,501 2,329 7.4
8,379 8,329 0.6 16,618 17,618 (5.7)
Business with customers located in Europe picked up in the second quarter; sales
were only 1.4 % lower compared with the previous year. In particular, the
segments Plastics & Fibers and Chemicals had higher sales in Europe. In the
second quarter, business in Europe accounted for 83 % of the income from
operations of the BASF Group. Although earnings declined in the Oil & Gas
segment, they still accounted for 39 % of earnings in Europe. Income from
operations before special items declined 15.3 % to euro 679 million. In the
nafta region, sales increased by 6 % in the second quarter despite a decline in
the average exchange rate of the dollar against the euro by about 5 %. This
sales increase was largely due to the new steam cracker in Port Arthur, Texas.
Income from operations before special items continued to improve and was euro 77
million, compared with a loss of euro 70 million in the same period of 2001. In
South America, sales fell drastically in the second quarter as a result of the
economic crisis in Argentina and the rapid devaluation of the Brazilian real.
The decline in sales particularly af-fected the Agricultural Products and
Coatings divisions. Income from operations was
Page 11
negative in the second quarter. This was partially caused by devaluation losses
in Argentina due to the further decline in the exchange rate of the peso. In the
Asia, Pacific Area, Africa region, sales increased by 11.2 % in the second
quarter. Business grew in Korea in particular. Income from operations improved
considerably as a result of the increased contribution to earnings of the site
in Kuantan, Malaysia, due to currency translation effects, as well as growth in
styrenics in Korea.
Employees
Since the end of 2001, the number of employees has declined by 1,832, in
particular due to the restructuring measures started last year. The decline in
the various regions was as follows: Europe 899, nafta 523, South America 388.
Personnel costs declined in the second quarter by 3.7 % to euro 1,527 million
and in the first six months of 2002 by 4.2 % to euro 3,005 million.
Number of employees
2nd Quarter 1st Half Year 2001
2002 2001 2002 2001
End of period 90,713 92,249 90,713 92,249 92,545
Average 90,941 92,312 91,435 95,896 94,744
Finance
Cash provided by operating activities was euro 823 million in the first six
months of 2002; the increase of euro 543 million compared with the same period
in 2001 was due to the improvement in earnings. In current assets, funds
employed in inventories were lower, both compared with the end of the year and
with the first six months. Since the end of the year, however, funds employed in
accounts receivable increased as a result of business growth and seasonal
effects. The level of receivables has been reduced compared with the first half
of 2001. Cash outflows
Page 12
were related to payments for fines and claims for damages relating to
antitrust violations in the vitamins business which occurred several years
ago, as well as the implementation of the restructuring measures decided upon
last year. Cash used in investing activities amounted to euro 838 million. As
planned, expenditures for tangible and intangible fixed assets were reduced
and were euro 280 million lower than in the previous year. A net total of
euro 684 million was raised through financing activities, in particular
through the issue of commercial paper. Since the end of 2001, financial
indebtedness has increased by euro 1,141 million to euro 3,976 million. In
the same period, liquid funds increased by euro 551 million to euro 1,294
million.
Consolidated Statements of Cash Flow 1st Half
Million euro 2002 2001
Net income* 1,058 334
Depreciation of fixed assets 1,222 1,355
Changes in net current assets (1,120) (1,246)
Miscellaneous items (337) (163)
Cash provided by operating activities 823 280
Expenditures for tangible and
intangible fixed assets (1,021) (1,301)
Acquisitions/divestitures, net - 7,281
Financial investments and other items 183 272
Cash provided by (used in) investing activities (838) 6,252
Page 13
Proceeds from capital increases 38 87
Changes in financial indebtedness 1,448 (5,096)
Dividends (802) (1,236)
Cash provided by (used in) financing activities 684 (6,245)
Net changes in cash and cash equivalents 669 287
Cash and cash equivalents as of
beginning of year and other changes 338 604
Cash and cash equivalents 1,007 891
Securities held as current assets 287 387
Liquid funds 1,294 1,278
*) Excluding extraordinary income in previous year
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 upon
assumptions as to future events that 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 BASFs Form 20-F filed with
the Securities and Exchange Commission. [The Annual Report on Form 20-F is
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 14
Financial Statement of BASF Group (abridged version)
Consolidated Statements of Income
2nd Quarter Change 1st Quarter Change
Million euro 2002 2001 in % 2002 2001 in %
Sales, net of
natural gas taxes 8,379 8,329 0.6 16,618 17,618 (5.7)
Cost of sales 5,536 5,634 (1.7) 11,013 11,765 (6.4)
Gross profit on sales 2,843 2,695 5.5 5,605 5,853 (4.2)
Selling expenses 1,231 1,283 (4.1) 2,442 2,669 (8.5)
General and
administrative expenses 177 138 28.3 348 321 8.4
Research and
development expenses 282 293 (3.8) 594 670 (11.3)
Other operating income 148 204 (27.5) 333 523 (36.3)
Other operating expenses 484 881 (45.1) 923 1,623 (43.1)
Income from operations 817 304 168.8 1,631 1,093 49.2
Expense/income
from financial assets 77 (27) . 77 (58) .
Interest result (69) (76) 9.2 (45) (203) 77.8
Financial result 8 (103) . 32 (261) .
Income from
ordinary activities 825 201 310.4 1,663 832 99.9
Extraordinary income - - - - 6,010 -
Page 15
Income before taxes
and minority interests 825 201 310.4 1,663 6,842 (75.7)
Income taxes 294 200 47.0 557 635 (12.3)
Minority interests 29 (10) . 48 3 .
Net income 502 11 . 1,058 6,204 (82.9)
Earnings per share
- ordinary E 0.86 0.02 . 1.81 0.55 229.1
- extraordinary E - - - - 9.61 -
Number of shares in
millions (weighted) 583 614 (5.0) 583 611 (4.6)
Consolidated Balance Sheets
Assets June 30 Change Dec. 31 Change
Million euro 2002 2001 in % 2001 in %
Intangible assets 3,441 4,140 (16.9) 3,943 (12.7)
Property, plant
and equipment 13,512 14,128 (4.4) 14,190 (4.8)
Financial assets 3,322 3,205 3.7 3,360 (1.1)
Fixed assets 20,275 21,473 (5.6) 21,493 (5.7)
Inventories 4,421 5,018 (11.9) 5,007 (11.7)
Accounts receivable, trade 6,341 7,190 (11.8) 5,875 7.9
Miscellaneous receivables 2,742 3,034 (9.6) 2,384 15.0
Deferred taxes 1,209 1,313 (7.9) 1,373 (11.9)
Liquid funds 1,294 1,278 1.3 743 74.2
Current assets 16,007 17,833 (10.2) 15,382 4.1
Page 16
Total assets 36,282 39,306 (7.7) 36,875 (1.6)
Stockholders' equity
and liabilities June 30 Change Dec. 31 Change
Million euro 2002 2001 in % 2001 in %
Subscribed capital
and capital surplus 4,408 4,407 0.0 4,408 0.0
Retained earnings
and other equity 12,549 14,547 (13.7) 12,754 (1.6)
Minority interests 395 368 7.3 360 9.7
Stockholders equity 17,352 19,322 (10.2) 17,522 (1.0)
Provisions for
pensions and similar
obligations 3,858 3,936 (2.0) 3,953 (2.4)
Provisions for taxes
and other provisions 5,066 6,256 (19.0) 6,188 (18.1)
Provisions 8,924 10,192 (12.4) 10,141 (12.0)
Financial indebtedness 3,976 2,922 36.1 2,835 40.2
Accounts payable, trade 2,417 2,662 (9.2) 2,491 (3.0)
Other liabilities 3,613 4,208 (14.1) 3,886 (7.0)
Liabilities 10,006 9,792 2.2 9,212 8.6
Total stockholders
equity and liabilities 36,282 39,306 (7.7) 36,875 (1.6)
The interim financial statements have not been audited.
Page 17
Publisher:
BASF Aktiengesellschaft
Corporate Department Communications
67056 Ludwigshafen
Germany
You can find HTML versions of this and other publications from BASF on our
homepage at www.basf.com.
You can also order reports:
- by telephone: +49 62160-0
- by fax: +49 6021 704-431
- by e-mail: medien-service@basf-ag.de
- on the Internet: www.basf.com
Important dates
November 14, 2002
Interim Report
Third Quarter 2002
March 18, 2003
Financial Results 2002
April 29, 2003
Interim Report
First Quarter 2003
May 6, 2003
Annual Meeting, Mannheim
August 7, 2003
Interim Report
Second Quarter 2003
Contacts
Corporate Media Relations:
Michael Grabicki
Phone: +49 621 60-99938
Fax: +49 621 60-20129
Investor Relations:
Carolin Weitzmann
Phone: +49 621 60-48230
Fax: +49 621 60-22500
General inquiries:
Phone: +49 621 60-0
Fax: +49 621 60-42525
Page 18
Internet: www.basf.com
BASF Aktiengesellschaft
67056 Ludwigshafen
Germany