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
November 2, 2005
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- .
BASF Continues to Grow Profitably
LUDWIGSHAFEN, Germany--(BUSINESS WIRE)--Nov. 2, 2005--BASF
-- Higher sales (plus 11 percent) and EBIT before special items (plus
13 percent)
-- Earnings impacted by high raw material prices and hurricanes in
the United States
-- Cost saving goals increased in North America
-- Outlook for full year 2005 improved further:
-- Significant increase in sales and EBIT before special items
-- Further increase in premium on cost of capital
BASF (NYSE:BF)(FWB:BAS)(LSE:BFA) continued on its growth path in
the third quarter of 2005. This was confirmed by a further improvement
in the figures presented at the company's Fall Press Conference in
Ludwigshafen. The strong business performance seen in the first half
of the year maintained its momentum in the third quarter. The summer
lull was less pronounced than expected. With strong demand on the one
hand, and very high and very volatile oil prices on the other,
necessary price increases could be passed on to the market only to a
limited degree.
Compared with the same quarter of 2004, sales increased by 11
percent to EUR 10.4 billion. Income from operations (EBIT) before
special items rose by 13 percent to more than EUR 1.3 billion.
Cumulative sales for the first nine months of the year rose by
more than 12 percent to EUR 31 billion. BASF's profitable growth is
underlined by the fact that EBIT before special items increased by 26
percent to EUR 4.5 billion.
Optimistic outlook for the full year 2005
Demand for BASF's products remains strong. Further increases in
raw materials and energy costs continue to put pressure on margins.
For the full year 2005, Dr. Jurgen Hambrecht, Chairman of the Board of
Executive Directors of BASF Aktiengesellschaft, expects significantly
higher sales and EBIT before special items compared with the previous
year's strong level. "We therefore expect to further increase the
premium earned on our cost of capital," he said.
In the fourth quarter of 2005, BASF does not anticipate earnings
to reach the strong level posted in 2004. Reasons for this include:
-- Expected earnings impairments of EUR 120 million as a result
of production losses due to the hurricanes in the United
States.
-- The lack of gains of EUR 80 million posted in the fourth
quarter of 2004 as a result of mark-to-market accounting for
derivatives associated with the weak U.S. dollar.
Necessary price increase in all chemical segments
BASF's Chief Financial Officer, Dr. Kurt Bock, took special note
of the company's net income of EUR 808 million: "That is more than
double the figure of EUR 366 million that we posted in the same
quarter of 2004." At EUR 2.5 billion, net income in the first nine
months of 2005 exceeded the strong level for full year 2004 by almost
half a billion euros.
The sales growth was primarily due to necessary and, in some
cases, overdue price increases in all the company's chemical segments.
With these price increases, BASF responded to massively higher raw
material prices, which resulted in additional costs of more than EUR 1
billion in the first nine months of the year.
After special items of EUR 65 million, third-quarter EBIT rose by
17 percent to EUR 1,262 million. The level of special items was
comparable to that in previous quarters. Special items were related to
restructuring measures and programs to increase efficiency at a number
of sites.
The financial result increased by EUR 303 million to EUR 176
million. About two-thirds of this increase was due to special income
from the sale of the stake in Basell, which was completed on August 1,
2005.
The increase in earnings per share to EUR 1.55 from EUR 0.67 was
due to the company's continued share buyback program and the
associated reduction in the number of shares outstanding.
In the third quarter of 2005, BASF bought back shares for EUR 250
million. From January through to the end of October 2005 (cutoff:
October 27), the company bought back shares for EUR 1,228 million at
an average share price of EUR 54.24. As a result, BASF has repurchased
19.3 percent of its shares since starting its share buyback program in
1999.
At EUR 1,285 million, payments related to tangible and intangible
fixed assets in the first nine months of 2005 were lower than in the
same period of 2004 and, as planned, below the corresponding level of
depreciation and amortization.
Link between gas and oil prices reasonable and logical
BASF board member Dr. John Feldmann noted in his remarks that it
was both reasonable and logical to link gas prices to the price of
oil. "Oil and gas compete with one another in their most common
applications. Because oil is a globally traded commodity, its price is
therefore the most suitable basis for long-term gas contracts. Such
long-term contracts are essential for ensuring supply security for
Western Europe." Furthermore, gas markets in which prices were not
linked to the price of oil, such as the United Kingdom and the United
States, demonstrated much greater volatility and higher average
prices, said Feldmann.
At the same time, Feldmann also stressed that BASF provides its
customers with very flexible contracts via its WINGAS joint venture
with the Russian gas company Gazprom: "We offer different pricing
formulas that include prices based on spot markets, for example in
Zeebrugge, Belgium, or fixed-price components as well as prices linked
to the price of oil. The majority of our customers, however, opt for a
link to the price of oil as the key pricing component."
Higher sales in all regions
In the third quarter of 2005, BASF recorded higher sales in all
regions. Asia remained dynamic, and the economic environment in North
America was robust despite the hurricanes. In parts of Europe,
however, economic growth was weak, especially in Germany.
BASF's chairman stressed the company's successful restructuring
measures in North America, which, he said, were highlighted by the 25
percent increase in third-quarter EBIT before special items to EUR 110
million. BASF has also identified additional savings potential of $150
million per year in the region that is to be achieved by mid-2007.
This would incur one-time costs of around $80 million, said Hambrecht.
On top of this, the company has initiated steps to increase its
EBIT in North America by $200 million per year by the end of 2007. It
aims to use a Commercial Effectiveness program to increase the
efficiency of its marketing activities and reduce the complexity of
its business. This will be done by adjusting price structures,
logistics, warehousing and business models to reflect altered market
conditions.
BASF is the world's leading chemical company: The Chemical
Company. Its portfolio ranges from chemicals, plastics, performance
products, agricultural products and fine chemicals to crude oil and
natural gas. As a reliable partner to virtually all industries, BASF's
intelligent solutions and high-value products help its customers to be
more successful. BASF develops new technologies and uses them to open
up additional market opportunities. It combines economic success with
environmental protection and social responsibility, thus contributing
to a better future. In 2004, BASF had approximately 82,000 employees
and posted sales of more than EUR 37 billion. BASF shares are traded
on the stock exchanges in Frankfurt (BAS), London (BFA), New York (BF)
and Zurich (AN). Further information on BASF is available on the
Internet at www.basf.com.
The following information is also available on the Internet at the
addresses shown:
Interim report (from 7:30 a.m. CET)
www.basf.de/interimreport (English)
www.basf.de/zwischenbericht (German)
Press release (from 7:30 a.m. CET)
www.basf.de/pressrelease (English)
www.basf.de/pressemitteilungen (German)
Live transmission of the press conference
(from 10:30 a.m. CET)
www.basf.de/pcon (English)
www.basf.de/pk (German)
Speech Dr. Jurgen Hambrecht/Dr. Kurt Bock/Dr. John Feldmann -
printed version (from 10:30 a.m. CET)
www.basf.de/pressconference (English)
www.basf.de/pressekonferenz (German)
Press photos (from 7:30 a.m. CET)
www.basf.de/photos (English)
www.basf.de/fotos (German)
Information on BASF shares
www.basf.de/share (English)
www.basf.de/aktie (German)
Live transmission of the analysts' conference
(from 3:30 p.m. CET)
www.basf.de/share (English)
www.basf.de/aktie (German)
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.
BASF continues to grow profitably
Third-Quarter Results
July - September 2005, published on November 2, 2005
Overview BASF Group
3rd Quarter January - September
Change Change
Million EUR 2005 2004 in % 2005 2004 in %
Sales 10,361 9,314 11.2 31,025 27,679 12.1
Income from operations
before interest, taxes
amortization and
depreciation (EBITDA) 1,843 1,679 9.8 6,011 5,108 17.7
Income from operations
(EBIT) before special
items 1,327 1,172 13.2 4,547 3,613 25.9
Income from operations
(EBIT) 1,262 1,076 17.3 4,348 3,401 27.8
Financial result 176 (127) . 139 (155) .
Income before taxes and
minority interests 1,438 949 51.5 4,487 3,246 38.2
Net income 808 366 120.8 2,447 1,600 52.9
Earnings per share (EUR) 1.55 0.67 131.3 4.63 2.90 59.7
EBIT before special items
in percent of sales 12.8 12.6 - 14.7 13.1 -
Cash provided by
operating activities 1,929 1,579 22.2 4,010 3,785 5.9
Additions to fixed
assets* 408 491 (16.9) 1,620 1,475 9.8
Excluding acquisitions 408 466 (12.4) 1,252 1,390 (9.9)
Amortization and
depreciation* 581 603 (3.6) 1,663 1,707 (2.6)
Segment assets (end of
period)** 28,106 27,371 2.7 - - -
Personnel costs 1,419 1,388 2.2 4,089 4,048 1.0
Number of employees (end
of period) 80,695 84,784 (4.8) - - -
* Tangible and intangible fixed assets (including acquisitions)
** Tangible and intangible fixed assets, inventories and
business-related receivables
Starting from January 1, 2005, the accounting and reporting of the
BASF Group is performed according to International Financial Reporting
Standards (IFRS). The previous year's figures have been restated in
accordance with IFRS.
Contents
1 BASF Group Business Review and Outlook
2 Chemicals
4 Plastics
5 Performance Products
6 Agricultural Products & Nutrition
7 Oil & Gas
8 Regions
9 Consolidated Statements of Income
10 Consolidated Balance Sheets
11 Consolidated Statements of Cash Flows
13 Consolidated Statements of Equity
14 Segment Reporting
BASF shares 3rd Jan. -
Quarter Sept.
2005 2005
Share price (end of period)* (EUR) 62.50 -
High* (EUR) 62.50 62.50
Low* (EUR) 53.80 50.11
Average daily trade (million shares)* 2.76 2.74
BASF share performance** +13.6% +21.9%
DAX 30 performance** +10.0% +18.5%
EURO STOXX 50 performance** +8.0% +18.9%
Market capitalization (end of period)
(billion EUR) 33.2 -
Number of shares (end of period)
(million shares)*** 531.7 -
News from our innovation centers
Functional coatings for modern pharmaceuticals
BASF supports pharmaceutical manufacturers worldwide with a full
range of excipients
The coating of tablets can fulfill a variety of purposes, such as
masking a bitter taste, delaying active ingredient release, enhancing
consumption or modifying color. Besides sugar solutions or cellulose
derivatives, innovative polymers are mainly used to coat tablets -
such as those from BASF's Kollicoat(R) family. Apart from offering the
possibility of creating special functions through modifications, these
molecule chains have one decisive advantage: The coating with
Kollicoat in modern drum coaters now requires just a few hours.
The latest member of the product family is Kollicoat IR, an
instant-release film coating based on a new polymer developed by BASF.
In August 2005, Kollicoat IR was approved by the German authorities.
Thanks to its excellent properties, the innovative tablet coating
helps our customers to save up to 30 percent on their production
costs.
"BASF offers pharmaceutical manufacturers a full range of
excipients to help turn promising active agents into successful
medications," explains Dr. Jan-Peter Mittwollen of Strategic Marketing
for Pharmaceuticalexcipients at BASF. Even a simple headache tablet
can contain several BASF products. There are four types of excipients
that can be distinguished:
-- Binders (e.g., Kollidon(R) 30) help in the manufacturing of
tablets, so that for example a tablet can still be made out of
active ingredients that are difficult to compress.
-- Disintegrants (e.g., Kollidon CL) ensure through high swelling
that the tablet disintegrates quickly, allowing the active
ingredient to be rapidly released.
-- Coatings (e.g., Kollicoat IR) protect the tablets and make
them easier to swallow. In addition, the film coatings control
the release of the active ingredient from the tablet.
-- Solubilizers (e.g., Solutol(R) HS 15) make it possible for a
human body to accept an active ingredient that is not easily
soluble in water.
Each active ingredient places different demands on pharmaceutical
technology: Acid-sensitive drugs, for example, have to be protected
against aggressive gastric juices. Other active ingredients, such as
antihypertensive drugs, need to be released smoothly and continuously
over 24 hours. Research and innovation are not only part of the
development of a new active ingredient. On average, about 15% of the
price of a pharmaceutical product account for the techniques that
deliver the active ingredients to their targets in the body.
News from our innovation centers
Harnessing nature to make plants healthier
F 500 sets new standards and brings researchers nomination for
prestigious German Future Prize
Farmers around the world now rely on products based on BASF's
innovative fungicide F 500(R) to protect their crops from pathogenic
fungi. F 500 combats fungal diseases such as Asian soybean rust,
scabby in apple trees or mildew in wine. What's special about F 500 is
that it also makes crops healthier and more vital due to its positive
metabolic impact. This increases yield and quality. "If we succeed in
making plants healthier, this will be a great step forward for
agriculture," says Hans W. Reiners, president of BASF's Agricultural
Products division.
The nomination of two BASF scientists, Dr. Hubert Sauter and Klaus
Schelberger, as one of the four scientific teams for the "German
Future Prize 2005 - Federal President's Award for Technology and
Innovation" is a public acknowledgement of the development of the crop
protection active ingredient F 500. A large number of dedicated
employees helped to make F 500 reality. Projects singled out for the
coveted prize are not only of outstanding scientific value, but also
ripe for successful application. This year, the prize will be awarded
on November 11 in Berlin.
The first strobilurin fungicide was launched in 1996. In 2002,
BASF set a new standard in this exciting class of chemistry with F
500. Sales of products containing this active ingredient have risen
steadily since then. The most recent successes were achieved in the
fight against Asian rust in Brazil.
F 500 is the result of BASF's systematic research and development
work. The strobiliurins derive from a chemical compound produced by a
small forest mushroom, the pinecone cap (Strobiluris tenacellus), to
prevent other types of mushrooms from moving in and stealing its food.
This natural fungicide, strobilurin A, could not be used in
agriculture because it was too sensitive to light and air. Therefore,
chemists started looking for ways to change its structure without
reducing the biological activity. This is how the new chemical class
of strobilurins was developed, a substance with an unparalleled
spectrum of activity against pathogenic fungi and a very positive
environmental profile.
BASF Group Business Review and Outlook
-- Profitable growth
-- Sales: +11 %
-- EBIT before special items: +13%
-- Growth impetus from new Verbund site in Nanjing, China
-- Earnings impacted by high raw material prices and hurricanes in
the United States
-- Outlook for full year 2005 improved further:
-- Sales and EBIT before special items significantly higher than
in 2004
-- Further increase in premium on cost of capital
Sales
Compared with the same period of 2004, we increased sales in the
third quarter of 2005 by 11 % to EUR 10.4 billion. This was due to
higher sales prices in our chemical businesses, higher oil prices and
increased sales volumes.
Factors influencing sales in comparison
with previous year
% of sales 3rd Quarter Jan. - Sept.
Volumes 4 2
Prices 6 11
Currencies 2 (1)
Acquisitions/divestitures (1) .
Total 11 12
The strong sales growth in the Chemicals segment resulted from
higher sales volumes of petrochemicals and inorganics. The new Verbund
site in Nanjing, China, provided significant growth impetus for the
first time.
In the Plastics segment, we achieved double-digit sales growth in
the Performance Polymers and Polyure-thanes divisions.
Sales by segment, 3rd quarter 2005
Million EUR
Chemicals 2005 2,063 14%
2004 1,811
Plastics 2005 2,957 5%
2004 2,827
Performance 2005 2,106 2%
Products 2004 2,068
2005 1,008 (3)%
Agricultural Products & Nutrition 2004 1,035
Oil & Gas 2005 1,630 40%
2004 1,163
Despite the divestiture of the printing systems business in
November 2004, sales also rose in the Performance Products segment due
to further price increases.
Volumes declined slightly in the Agricultural Products segment.
The Fine Chemicals division continued to suffer from low prices for
lysine and vitamin C.
Sales in the Oil & Gas segment improved due to higher oil prices
as well as higher sales volumes of oil and gas.
Special items
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Million EUR 2005 2004 2005 2004 2005 2004 2005 2004
Special items in
Income from
operations (64) (100) (70) (16) (65) (96) 175
Financial result - (21) - (1) 222 (16) (580)
Income before taxes
and minority
interests (64) (121) (70) (17) 157 (112) (405)
Earnings
Compared with the same quarter of 2004, we increased income from
operations (EBIT) before special items by 13% to EUR 1,327 million.
In the Chemicals segment, earnings were below the strong level
posted in the third quarter of 2004. Significantly higher raw material
prices, in particular for petrochemicals, could not immediately be
passed on to the market.
The significant improvement in earnings in the Plastics segment
was due primarily to a considerable increase in margins in the
polyurethanes division during the course of the year.
In the Performance Products segment, earnings were at the same
level as in the third quarter of 2004 despite the divestiture of the
printing systems business. This was due mainly to the Functional
Polymers division.
The Agricultural Products business posted a loss due to the
seasonal nature of its business. Margins in the Fine Chemicals
division remained under pressure and performance is still
unsatisfactory.
In the Oil & Gas segment, the business sector exploration and
production posted significantly higher earnings. Earnings in the
natural gas trading sector were negatively impacted by lower margins.
In the third quarter, EBIT after special items rose by 17% to
EUR 1,262 million.
Special items were related to restructuring measures and programs
to increase efficiency at a number of sites.
The financial result contains special income from the sale of our
stake in Basell, which was completed on August 1, 2005.
EBIT before special items, 3rd quarter 2005
Million EUR
Chemicals 2005 268 (27)%
2004 367
Plastics 2005 267 48%
2004 180
Performance 2005 216 -
Products 2004 216
2005 (23) .
Agricultural Products & Nutrition 2004 4
Oil & Gas 2005 594 29%
2004 459
Income before taxes and minority interests climbed 52% to EUR
1,438 million.
The tax rate declined to 43% from 57% in the third quarter of
2004, mainly as a result of the tax-free gain from the sale of the
stake in Basell. Taxes for oil production that are noncompensable with
German corporate income tax amounted to EUR 317 million in the third
quarter of 2005 compared with EUR 197 million in the same period of
2004.
Net income more than doubled to EUR 808 million. Earnings per
share were EUR 1.55 compared with EUR 0.67 in the same period of the
previous year.
Outlook
We continue to expect global chemical production to grow by
approximately 3% in 2005. Growth is likely to be driven primarily by
Asia, but also by North America.
For 2005, we are forecasting an average dollar exchange rate of
$1.25 per euro. We have adjusted our forecast for the average price of
Brent crude in 2005 from $50 to $55 per barrel.
Demand for our products remains strong. Further increases in raw
material and energy costs continue to put pressure on our margins.
For the full year 2005, we are expecting significantly higher
sales and EBIT before special items compared with the previous year's
strong level (IFRS). We therefore expect to further increase the
premium earned on our cost of capital.
In the fourth quarter of 2005, we do not expect earnings to reach
the strong level posted in 2004. Reasons for this include:
-- Expected earnings impairments of EUR 120 million as a result
of production losses due to the hurricanes in the United
States.
-- The lack of gains of EUR 80 million posted in the fourth
quarter of 2004 as a result of mark-to-market accounting for
derivatives associated with the weak U.S. dollar.
Significant events
On September 28, BASF and SINOPEC officially inaugurated their
Verbund site in Nanjing, China. BASF and SINOPEC now plan to invest in
additional downstream plants and in expanding the capacity of the
steam cracker at the new Nanjing site.
On September 8, BASF, Gazprom and Eon signed a basic agreement on
the construction of the North European Gas Pipeline (NEGP) through the
Baltic Sea. On October 14, BASF agreed with Gazexport to procure nine
billion cubic meters of Russian natural gas per year for 25 years
through the NEGP for Western European consumers starting in 2010 -
this corresponds to more than 200 billion cubic meters of natural gas
in total.
On October 17, BASF announced that it will transfer about EUR 3.7
billion into a newly established CTA (Contractual Trust Arrangement)
by the end of 2005 to finance pension obligations. The benefit levels
for employees and pensioners of BASF Aktiengesellschaft remain
unchanged. As a result of this measure, BASF is improving the
international comparability of its financial reporting. BASF's
financial and strategic flexibility will not be affected.
Chemicals
-- Further significant increase in sales
-- Earnings impaired due to decline in cracker margins
-- Boost to sales from new plants in Nanjing, China
Overview Chemicals
3rd Quarter January - September
Change Change
Million EUR 2005 2004 in % 2005 2004 in %
Sales 2,063 1,811 14 5,892 5,141 15
ThereofInorganics 270 214 26 745 626 19
Petrochemicals 1,309 1,097 19 3,672 3,063 20
Intermediates 484 500 (3) 1,475 1,452 2
EBITDA 408 469 (13) 1,429 1,282 11
EBIT before special items 268 367 (27) 1,109 958 16
EBIT before special items in
percent of sales 13.0 20.3 - 18.8 18.6 -
EBIT 259 338 (23) 1,030 907 14
At over EUR 2 billion, sales reached a record high (volumes 9%,
portfolio 3%, prices 2%). This was due primarily to higher sales
volumes of petrochemicals and the expansion of our portfolio of
inorganics. It was not possible to match the very strong levelof
earnings posted in the same period of 2004 due to higher raw material
prices and plant shutdowns as a result of the hurricanes in the United
States.
Inorganics
The significant increase in sales was achieved thanks to the
acquisition of the electronic chemicals business in April 2005 as well
as higher sales volumes. Earnings were at the previous year's level.
Higher purchasing costs for natural gas had a negative impact on the
glues and impregnating resins business. Margins for basic inorganic
chemicals improved, however.
Petrochemicals
Sales were boosted by strong global demand for petrochemicals
together with additional sales volumes from the new plants started up
in Nanjing, China. In the course of the quarter, cracker margins
declined to an unsatisfactory level due to significantly lower olefin
prices, in particular in Europe, and a simultaneous increase in the
cost of naphtha. In North America (NAFTA), earnings were negatively
impacted by plant shutdowns made necessary by the hurricanes in the
United States. Margins for plasticizers and solvents were maintained,
and earnings for alkylene oxides and glycols improved. Our new
world-scale plants in Nanjing, China, are operating at a high capacity
utilization rate. We are planning to expand the capacity of the steam
cracker at our Verbund site in Antwerp, Belgium, to more than 1
million metric tons of ethylene per year.
Intermediates
The rigorous implementation of our "value over volume" strategy
enabled us to raise prices. Sales volumes were to some extent impaired
by the textiles dispute between China, the United States and the
European Union. Overall, sales declined slightly. Lower capacity
utilization and higher raw material costs led to a decline in
earnings.
Plastics
-- Sales growth due to higher prices and increased sales volumes
-- Improved earnings in Polyurethanes and Performance Polymers
-- Globalexpansion of innovative and cost-effective HPPO
technology
Overview Plastics
3rd Quarter January - September
Change Change
Million EUR 2005 2004 in % 2005 2004 in %
Sales 2,957 2,827 5 8,681 7,656 13
ThereofStyrenics 1,135 1,276 (11) 3,399 3,213 6
Performance Polymers 743 644 15 2,164 1,906 14
Polyurethanes 1,079 907 19 3,118 2,537 23
EBITDA 382 293 30 1,162 859 35
EBIT before special items 267 180 48 810 515 57
EBIT before special items in
percent of sales 9.0 6.4 - 9.3 6.7 -
EBIT 260 169 54 808 494 64
The sales growth (volumes 2%, portfolio -1 %, prices 2%,
currencies 2%) was primarily the result of higher sales prices in the
Polyurethanes division as well as higher sales volumes in the
Performance Polymers division. The significant rise in earnings was
mainly due to the improvement in the polyurethanes business and
simultaneous cost reductions. The Performance Polymers division also
posted higher earnings. Margins for styrenics, however, remained under
pressure.
Styrenics
The decline in sales compared with the strong third quarter of
2004 was due to lower sales prices and sales volumes. This was
essentially the result of weaker global demand and the divestiture of
the polystyrene business in the United States. High and volatile raw
material prices continued to impact earnings.
Performance Polymers
Price increases to pass on higher raw material costs and higher
sales volumes of polyamide in all regions led to an increase in sales.
In Asia, we further expanded our engineering plastics business and
increased compounding capacities at our site in Pasir Gudang,
Malaysia. The growth in earnings was due mainly to higher volumes,
since margins remained generally stable. In August this year, we
acquired Leuna-Miramid GmbH to further extend our leading position in
engineering plastics in Europe. Closing for this deal is expected in
November 2005.
Polyurethanes
We increased sales in all regions thanks to significant price
increases and slightly higher sales volumes. The TDI business acquired
from Huntsman in July 2005 also contributed to the sales growth.
Earnings rose significantly.
In early 2006, BASF and Dow plan to start work on the construction
of a propylene oxide plant at BASF's Verbund site in Antwerp, Belgium.
The new plant will employ the cost-effective, innovative HPPO
technology. New plants are also planned in the United States and in
Asia.
Performance Products
-- Sales increase further despite divestiture
-- Earnings in Functional Polymers remain strong
-- High capacity utilization at new plants in Nanjing, China
Overview Performance Products
3rd Quarter January - September
Change Change
Million EUR 2005 2004 in % 2005 2004 in %
Sales 2,106 2,068 2 6,112 6,026 1
ThereofPerformance Chemicals 722 830 (13) 2,150 2,451 (12)
Coatings 561 516 9 1,588 1,541 3
Functional Polymers 823 722 14 2,374 2,034 17
EBITDA 299 307 (3) 969 922 5
EBIT before special items 216 216 - 713 659 8
EBIT before special items in
percent of sales 10.3 10.4 - 11.7 10.9 -
EBIT 209 214 (2) 715 647 11
Thanks to further price increases, sales rose despite the
divestiture of the printing systems business in November 2004 (volumes
-1 %, portfolio -5%, prices 6%, currencies 2%). Earnings remained at
the previous year's level. The Functional Polymers division continued
on its profitable growth path in the third quarter of 2005 and made a
significant contribution to the segment's strong profitability.
Performance Chemicals
Sales from ongoing business were increased in all regions due to
higher sales prices, although higher volumes were posted only for
performance chemicals for the automotive and oil industry. The
positive earnings trend for performance chemicals for detergents and
formulators and for the automotive and oil industry was unable to
offset fully the decline in earnings for performance chemicals for
coatings, plastics and specialties, and for leather.
Coatings
Sales rose due to strong sales volumes of automotive (OEM)
coatings in Europe and North America (NAFTA) and thanks to brisk
business with automotive refinish coatings in North America. Earnings
declined because of further increases in raw material costs, which
could not be passed on quickly, in particular in the automotive
coatings business. To strengthen our portfolio of industrial coatings,
we agreed to acquire the coil coatings business of Rhenania Coatings
GmbH in October 2005. The deal is expected to close by the end of this
year.
Functional Polymers
We increased sales further in all regions, in particular due to
the contribution from acrylic monomers, adhesive raw materials and
dispersions for decorative paints. Sales grew faster than the market
thanks to price increases. Compared with the same period of 2004,
earnings rose significantly as a result of better margins and high
capacity utilization. The integrated plant complex to produce acrylic
acid at the site in Nanjing, China, has been producing at a very high
capacity utilization rate since it went on stream.
Agricultural Products & Nutrition
-- Agricultural Products: Sales and earnings down slightly on
2004
-- Fine Chemicals: Earnings affected by lysine
Overview Agricultural Products
3rd Quarter January - September
Change Change
Million EUR 2005 2004 in % 2005 2004 in %
Sales 576 591 (3) 2,578 2,645 (3)
EBITDA 43 45 (4) 726 653 11
EBIT before special items (24) (11) (118) 547 482 13
EBIT before special items in
percent of sales (4.2) (1.9) - 21.2 18.2 -
EBIT (12) (29) 59 563 440 28
Third-quarter sales (volumes-2%, prices/currencies -1 %) and
earnings were lower than in the same period of 2004. In North America,
soybean rust has spread to a lesser extent than was initially
expected. Sales volumes declined slightly. We systematically increased
spending on research and development.
We further optimized our portfolio by selling our non-European
business with the herbicide imazamethabenz to the Australian company
Nufarm in September 2005. This resulted in special income. In South
America, the business made a good start to the new season in the
second half of the quarter.
Overview Fine Chemicals
3rd Quarter January - September
Change Change
Million EUR 2005 2004 in % 2005 2004 in %
Sales 432 444 (3) 1,249 1,358 (8)
EBITDA 34 41 (17) 96 189 (49)
EBIT before special items 1 15 (93) 28 95 (71)
EBIT before special items in
percent of sales 0.2 3.4 - 2.2 7.0 -
EBIT 1 3 (67) 2 82 (98)
Sales volumes increased for numerous products, including
fat-soluble vitamins, organic acids and aroma chemicals. The Fine
Chemicals division nevertheless continued to suffer from low market
prices for the important products lysine and vitamin C. This had a
negative impact on sales (volumes 5%, portfolio -2%, prices -7%,
currencies 1%) and earnings.
Earnings were also affected by a further increase in raw material
costs.
The acquisition of the Swiss fine chemical company Orgamol
successfully closed on October 1, 2005. This transaction will
strengthen our pharma contract manufacturing business.
Oil & Gas
-- Exploration and production: Higher oil price and increased
production
-- Natural gas trading: Strong sales growth, but margins impacted
by higher import prices
Overview Oil & Gas 3rd Quarter January - September
Change Change
Million EUR 2005 2004 in % 2005 2004 in %
Sales 1,630 1,163 40 5,120 3,647 40
Thereof Exploration and
production 904 643 41 2,459 1,754 40
Natural gas trading 726 520 40 2,661 1,893 41
EBITDA 697 582 20 1,973 1,454 36
Thereof Exploration and
production 644 463 39 1,712 1,118 53
Natural gas trading 53 119 (55) 261 336 (22)
EBIT before special items 594 459 29 1,657 1,141 45
Thereof Exploration and
production 572 371 54 1,491 898 66
Natural gas trading 22 88 (75) 166 243 (32)
EBIT before special items in
percent of sales 36.4 39.5 - 32.4 31.3 -
Thereof Exploration and
production 63.3 57.7 - 60.6 51.2 -
Natural gas trading 3.0 16.9 - 6.2 12.8 -
EBIT 594 459 29 1,657 1,148 44
Thereof Exploration and
production 572 371 54 1,491 905 65
Natural gas trading 22 88 (75) 166 243 (32)
In the third quarter, a record average price for Brent crude of
$61.63 per barrel and higher production volumes caused sales to rise
significantly (volumes 4%, prices/currencies 36%), as did an expansion
in natural gas trading. Earnings before oil production taxes included
in tax expense increased by EUR 135 million.
In the exploration and production business sector, the significant
increase in sales and earnings was primarily due to the significant
increase in crude oil prices. The average price of Brent crude was
approximately $20 (EUR 17) higher per barrel compared with the same
period of 2004. Furthermore, production of oil, condensate and natural
gas was raised.
The pipeline through the North Sea linking the Mittelplate
drilling and production island to the Dieksand land station in Germany
started operations as scheduled in September 2005.
We succeeded in increasing sales volumes and sales in the natural
gas trading business sector. However, margins and earnings were
significantly lower compared with the same period of 2004 because the
terms of sales contracts did not allow sales prices to be adjusted
immediately to reflect constantly increasing import prices for natural
gas. In 2004, third-quarter earnings also contained a one-time payment
from an arbitration settlement.
In September, we signed a basic agreement with our Russian partner
Gazprom and Eon on the construction of the North European Gas Pipeline
(NEGP) through the Baltic Sea. Furthermore, in October BASF agreed
with Gazexport to procure a totalof 200 billion cubic meters of
natural gas through the NEGP over a period of 25 years starting in
2010.
Regions
-- Sales growth in all regions
-- North America: Additional measures to improve earnings
-- Asia: New Verbund site in Nanjing, China, exceeds ambitious
goals
Overview Regions Sales Sales
(location of company) (location of customer)
Change Change
Million EUR 2005 2004 in % 2005 2004 in %
3rd Quarter
Europe 5,802 5,370 8 5,436 5,058 7
Thereof Germany 3,927 3,610 9 2,097 1,728 21
North America (NAFTA) 2,291 2,042 12 2,266 2,058 10
Asia Pacific 1,645 1,323 24 1,820 1,413 29
South America, Africa,
Middle East 623 579 8 839 785 7
10,361 9,314 11 10,361 9,314 11
January - September
Europe 18,082 16,563 9 17,116 15,625 10
Thereof Germany 12,378 11,141 11 6,351 5,515 15
North America (NAFTA) 7,141 6,164 16 7,097 6,207 14
Asia Pacific 4,395 3,590 22 4,746 3,907 21
South America, Africa,
Middle East 1,407 1,362 3 2,066 1,940 6
31,025 27,679 12 31,025 27,679 12
Overview Regions EBIT before special items
Change
Million EUR 2005 2004 in %
3rd Quarter
Europe 1,015 889 14
Thereof Germany 703 623 13
North America (NAFTA) 110 88 25
Asia Pacific 113 106 7
South America, Africa, Middle East 89 89 -
1,327 1,172 13
January - September
Europe 3,348 2,739 22
Thereof Germany 2,217 1,928 15
North America (NAFTA) 732 391 87
Asia Pacific 295 272 8
South America, Africa, Middle East 172 211 (18)
4,547 3,613 26
Third-quarter sales by location of company in Europe increased by
8%. EBIT before special items rose by EUR 126 million to EUR 1,015
million. The Oil & Gas segment was mainly responsible for the sales
and earnings growth.
In North America, sales by location of company improved by 12% in
dollar terms, and EBIT before special items improved by EUR 22 million
to EUR 110 million. Production losses due to the hurricanes negatively
impacted sales and earnings. In addition to the cost savings of $250
milion we have already achieved, we are now working to save a further
$150 million in the region by mid-2007. In the same period, we are
planning to increase EBIT by $200 million by means of even more
effective market activities.
In Asia Pacific, companies increased sales in local currencies by
21 %. EBIT before special items rose EUR 7 million to EUR 113 million.
This was due to the new Verbund site in Nanjing, China, and the
successful polyurethanes business in Korea.
In South America, Africa, Middle East, sales by location of
company declined 8% in local currency terms. EBIT before special items
was unchanged at EUR 89 million. The Agricultural Products division
made a good start to the new season in the second half of the quarter.
In the Performance Products segment, we increased sales and earnings
thanks to substantially higher sales volumes of decorative paints.
Consolidated Statements of Income
3rd Quarter January - September
Change Change
Million EUR 2005 2004 in % 2005 2004 in %
Sales 10,361 9,314 11.2 31,025 27,679 12.1
Cost of sales 7,277 6,423 13.3 21,205 18,784 12.9
Gross profit on sales 3,084 2,891 6.7 9,820 8,895 10.4
Selling expenses 1,083 1,128 (4.0) 3,172 3,385 (6.3)
General and administrative
expenses 194 180 7.8 551 528 4.4
Research and development
expenses 326 309 5.5 901 850 6.0
Other operating income 96 64 50.0 278 271 2.6
Other operating expenses 315 262 20.2 1,126 1,002 12.4
Income from operations 1,262 1,076 17.3 4,348 3,401 27.8
(Expenses)/income from
financial assets 219 (2) . 332 56 492.9
Interest result (40) (50) 20.0 (131) (159) 17.6
Other financial results (3) (75) 96.0 (62) (52) (19.2)
Financial result 176 (127) . 139 (155) .
Income before taxes and
minority interests 1,438 949 51.5 4,487 3,246 38.2
Income taxes 622 537 15.8 1,941 1,534 26.5
Net income before minority
interests 816 412 98.1 2,546 1,712 48.7
Minority interests 8 46 (82.6) 99 112 (11.6)
Net income 808 366 120.8 2,447 1,600 52.9
Earnings per share (EUR ) 1.55 0.67 131.3 4.63 2.90 59.7
Number of shares, in
million (weighted) 521 546 (4.6) 528 551 (4.2)
The interim financial statements have not been audited. From
January 1, 2005, the financial statements were prepared in accordance
with International Financial Reporting Standards (IFRS); the previous
year's figures have been restated. The transition in accounting and
valuation methods and the reconciliation to IFRS for the 2004 figures
are described on page 15 ff of the Interim Report for the first
quarter of 2005.
As of the second quarter of 2005, we record the current expenses
or income from combined interest rate and currency swaps in the
interest result rather than under other financial results. The
previous year's figures have been restated to allow comparison.
Consolidated Balance Sheets
Assets Sept. 30, Sept. 30, Change Dec. 31, Change
Million EUR 2005 2004 in % 2004 in %
Long-term assets
Intangible assets 3,710 3,840 (3.4) 3,610 2.8
Property, plant and
equipment 13,659 13,580 0.6 13,007 5.0
Investments accounted for
using the equity method 241 1,684 (85.7) 1,092 (77.9)
Other financial assets 936 931 0.5 941 (0.5)
Deferred taxes 1,088 1,080 0.7 1,067 2.0
Other long-term assets 616 600 2.7 598 3.0
20,250 21,715 (6.7) 20,315 (0.3)
Short-term assets
Inventories 5,354 4,716 13.5 4,645 15.3
Accounts receivable, trade 6,306 6,126 2.9 5,861 7.6
Other receivables and
miscellaneous short-term
assets 1,804 1,964 (8.1) 2,073 (13.0)
Liquid funds 4,311 1,582 172.5 2,291 88.2
17,775 14,388 23.5 14,870 19.5
Total assets 38,025 36,103 5.3 35,185 8.1
Stockholders' equity and liabilities
Million EUR Sept. 30, Sept. 30, Change Dec. 31, Change
2005 2004 in % 2004 in %
Stockholders' equity
Subscribed capital 1,330 1,396 (4.7) 1,384 (3.9)
Capital surplus 3,078 3,016 2.1 3,022 1.9
Retained earnings 12,579 12,028 4.6 12,154 3.5
Other comprehensive income 572 5 . (166) .
Minority interests 444 371 19.7 347 28.0
18,003 16,816 7.1 16,741 7.5
Long-term liabilities
Provisions for pensions and
similar obligations 3,930 3,949 (0.5) 3,866 1.7
Other provisions 2,455 2,391 2.7 2,385 2.9
Deferred taxes 991 656 51.1 817 21.3
Financial indebtedness 3,561 1,888 88.6 1,845 93.0
Other liabilities 954 1,020 (6.5) 1,043 (8.5)
11,891 9,904 20.1 9,956 19.4
Short-term liabilities
Accounts payable, trade 2,332 2,739 (14.9) 2,372 (1.7)
Provisions 2,896 2,626 10.3 2,508 15.5
Tax liabilities 969 886 9.4 644 50.5
Financial indebtedness 318 1,533 (79.3) 1,453 (78.1)
Other liabilities 1,616 1,599 1.1 1,511 6.9
8,131 9,383 (13.3) 8,488 (4.2)
Total stockholders' equity
and liabilities 38,025 36,103 5.3 35,185 8.1
Consolidated Statements of Cash Flows
January
-September
Million EUR 2005 2004
Net income 2,447 1,600
Depreciation and amortization of long-term
assets 1,663 1,739
Changes in net working capital 199 505
Miscellaneous items (299) (59)
Cash provided by operating activities 4,010 3,785
Payments related to tangible and intangible
fixed assets (1,285) (1,425)
Acquisitions/divestitures 1,017 5
Financial investments and other items 109 (298)
Cash used in investing activities (159) (1,718)
Proceeds from capital increases/(decreases) (1,115) (548)
Changes in financial indebtedness 230 (220)
Dividends (945) (825)
Cash used in financing activities (1,830) (1,593)
Net changes in cash and cash equivalents 2,021 474
Cash and cash equivalents as of beginning of
year and other changes 2,125 539
Cash and cash equivalents 4,146 1,013
Marketable securities 165 569
Liquid funds 4,311 1,582
The previous year's figures were restated due the transition to IFRS.
There were no significant changes.
At EUR 4,010 million, cash provided by operating activities in the
first three quarters was EUR 225 million higher than in the same
period of 2004. This was due primarily to higher earnings. Net working
capital decreased even though we expanded our business.
Cash used in investing activities led to a cash outflow of EUR 159
million compared with EUR 1,718 million in the first nine months of
2004. At EUR 1,285 million, payments related to tangible and
intangible fixed assets were below the previous year's level and were
significantly lower than the level of depreciation and amortization on
fixed assets. The net effect of acquisitions and divestitures rose to
EUR 1,017 million due to the sale of our stake in Basell.
In cash used in financing activities, share buybacks and dividend
payments led to a cash outflow of EUR 2.1 billion. In the first nine
months of 2005, we bought back 21 million shares for EUR 1,124 million
or an average of EUR 53.77 per share.
Liquid funds increased by EUR 2,020 million since the end of 2004
to EUR 4,311 million, and at EUR 3,879 million, financial indebtedness
was EUR 581 million higher than on December 31, 2004. As of September
30, 2005, net liquidity was EUR 432 million compared with net debt of
EUR 1,007 mil lion at the end of 2004. The equity ratio was 47%.
Consolidated Statements of Equity
January - September 2005 Number of
Million EUR subscribed
shares Subscribed Capital
outstanding capital surplus
As of January 1, 2005 540,440,410 1,384 3,022
Share buyback and cancellation of
shares including own shares intended
to be cancelled (20,902,229) (54) 56
Capital injection by minority
interests - - -
Dividends paid - - -
Net income - - -
Change in other comprehensive
income* - - -
Conditional capital: Exercise of
conversion rights by former
Wintershall shareholders 819 - -
Change in scope of consolidation
and other changes - - -
As of September 30, 2005 519,539,000 1,330 3,078
January - September 2005 Other Stock-
Million EUR Retained comprehensive Minority holders'
earnings income interests equity
As of January 1, 2005 12,154 (166) 347 16,741
Share buyback and
cancellation of shares
including own shares
intended to be cancelled (1,126) - - (1,124)
Capital injection by
minority interests - - 10 10
Dividends paid (904) - (41) (945)
Net income 2,447 - 99 2,546
Change in other
comprehensive
income* - 738 27 765
Conditional capital:
Exercise of conversion
rights by former
Wintershall shareholders - - - 0
Change in scope of
consolidation
and other changes 8 - 2 10
As of September 30, 2005 12,579 572 444 18,003
January - September 2004 Number of
Million EUR subscribed
shares Subscribed Capital
outstanding capital surplus
As of January 1, 2004 556,643,410 1,425 2,983
Share buyback and cancellation of
shares including own shares intended
to be cancelled (11,493,000) (29) 29
Capital injection by minority
interests - - -
Dividends paid - - -
Net income - - -
Change in other comprehensive
income* - - -
Change in scope of consolidation
and other changes - - 4
As of September 30, 2004 545,150,410 1,396 3,016
January - September 2004 Other Stock-
Million EUR Retained comprehensive Minority holders'
earnings income interests equity
As of January 1, 2004 11,673 28 403 16,512
Share buyback and
cancellation of shares
including own shares
intended to be cancelled (492) - - (492)
Capital injection by
minority interests - - (60) (60)
Dividends paid (774) - (51) (825)
Net income 1,600 - 112 1,712
Change in other
comprehensive
income* - (23) (66) (89)
Change in scope of
consolidation
and other changes 21 - 33 58
As of September 30, 2004 12,028 5 371 16,816
* Contains income-neutral changes in equity (in particular,
translation adjustments and changes in the market value of financial
instruments)
Segment Reporting
Segments
Million EUR Sales EBITDA
3rd Quarter 2005 2004 in % 2005 2004 in %
Chemicals 2,063 1,811 13.9 408 469 (13.0)
Plastics 2,957 2,827 4.6 382 293 30.4
Performance Products 2,106 2,068 1.8 299 307 (2.6)
Agricultural Products &
Nutrition 1,008 1,035 (2.6) 77 86 (10.5)
Agricultural Products 576 591 (2.5) 43 45 (4.4)
Fine Chemicals 432 444 (2.7) 34 41 (17.1)
Oil & Gas 1,630 1,163 40.2 697 582 19.8
Other* 597 410 45.6 (20) (58) 65.5
10,361 9,314 11.2 1,843 1,679 9.8
Research and
3rd Quarter development expenses Assets**
Chemicals 34 26 30.8 5,993 5,374 11.5
Plastics 33 35 (5.7) 6,440 6,426 0.2
Performance Products 55 61 (9.8) 4,864 5,082 (4.3)
Agricultural Products &
Nutrition 98 91 7.7 6,453 6,549 (1.5)
Agricultural Products 80 67 19.4 5,164 5,211 (0.9)
Fine Chemicals 18 24 (25.0) 1,289 1,338 (3.7)
Oil & Gas 58 49 18.4 4,356 3,940 10.6
Other* 48 47 2.1 9,919 8,732 13.6
326 309 5.5 38,025 36,103 5.3
Segments Income from Income from
Million EUR operations operations
before special items (EBIT)
3rd Quarter 2005 2004 in % 2005 2004 in %
Chemicals 268 367 (27.0) 259 338 (23.4)
Plastics 267 180 48.3 260 169 53.8
Performance Products 216 216 - 209 214 (2.3)
Agricultural Products &
Nutrition (23) 4 . (11) (26) 57.7
Agricultural Products (24) (11) . (12) (29) 58.6
Fine Chemicals 1 15 (93.3) 1 3 (66.7)
Oil & Gas 594 459 29.4 594 459 29.4
Other* 5 (54) . (49) (78) 37.2
1,327 1,172 13.2 1,262 1,076 17.3
Additions to fixed Amortization and
3rd Quarter assets*** depreciation***
Chemicals 77 114 (32.5) 149 131 13.7
Plastics 113 102 10.8 122 124 (1.6)
Performance Products 61 62 (1.6) 90 93 (3.2)
Agricultural Products &
Nutrition 33 60 (45.0) 88 112 (21.4)
Agricultural Products 22 22 - 55 74 (25.7)
Fine Chemicals 11 38 (71.1) 33 38 (13.2)
Oil & Gas 106 120 (11.7) 103 123 (16.3)
Other* 18 33 (45.5) 29 20 45.0
408 491 (16.9) 581 603 (3.6)
Segments
Million EUR Sales EBITDA
January - September 2005 2004 in % 2005 2004 in %
Chemicals 5,892 5,141 14.6 1,429 1,282 11.5
Plastics 8,681 7,656 13.4 1,162 859 35.3
Performance Products 6,112 6,026 1.4 969 922 5.1
Agricultural Products &
Nutrition 3,827 4,003 (4.4) 822 842 (2.4)
Agricultural Products 2,578 2,645 (2.5) 726 653 11.2
Fine Chemicals 1,249 1,358 (8.0) 96 189 (49.2)
Oil & Gas 5,120 3,647 40.4 1,973 1,454 35.7
Other* 1,393 1,206 15.5 (344) (251) (37.1)
31,025 27,679 12.1 6,011 5,108 17.7
Research and
January - September development expenses Assets**
Chemicals 89 78 14.1 5,993 5,374 11.5
Plastics 102 99 3.0 6,440 6,426 0.2
Performance Products 152 171 (11.1) 4,864 5,082 (4.3)
Agricultural Products &
Nutrition 276 258 7.0 6,453 6,549 (1.5)
Agricultural Products 223 191 16.8 5,164 5,211 (0.9)
Fine Chemicals 53 67 (20.9) 1,289 1,338 (3.7)
Oil & Gas 128 111 15.3 4,356 3,940 10.6
Other* 154 133 15.8 9,919 8,732 13.6
901 850 6.0 38,025 36,103 5.3
Segments Income from Income from
Million EUR operations operations
before special items (EBIT)
January - September 2005 2004 in % 2005 2004 in %
Chemicals 1,109 958 15.8 1,030 907 13.6
Plastics 810 515 57.3 808 494 63.6
Performance Products 713 659 8.2 715 647 10.5
Agricultural Products &
Nutrition 575 577 (0.3) 565 522 8.2
Agricultural Products 547 482 13.5 563 440 28.0
Fine Chemicals 28 95 (70.5) 2 82 (97.6)
Oil & Gas 1,657 1,141 45.2 1,657 1,148 44.3
Other* (317) (237) (33.8) (427) (317) (34.7)
4,547 3,613 25.9 4,348 3,401 27.8
Additions to fixed Amortization and
January - September assets*** depreciation***
Chemicals 534 432 23.6 399 375 6.4
Plastics 315 314 0.3 354 365 (3.0)
Performance Products 249 196 27.0 254 275 (7.6)
Agricultural Products &
Nutrition 97 171 (43.3) 257 320 (19.7)
Agricultural Products 48 58 (17.2) 163 213 (23.5)
Fine Chemicals 49 113 (56.6) 94 107 (12.1)
Oil & Gas 356 264 34.8 316 306 3.3
Other* 69 98 (29.6) 83 66 25.8
1,620 1,475 9.8 1,663 1,707 (2.6)
* "Other" includes the fertilizers business and other businesses as
well as expenses, income and assets not allocated to the segments.
This item also includes foreign currency results from financial
indebtedness that are not allocated to the segments as well as
from currency positions that are macro-hedged (EUR 19 million in
the third quarter (previous year EUR 3 million) and EUR (120)
million in the first nine months (previous year EUR 1 million)).
** The assets of "Other" includes the assets of the fertilizers
business and other businesses as well as assets that are not
allocated to the segments (financial assets, liquid funds,
financial receivables, deferred taxes; 3rd quarter 2005: EUR 8,252
million, 3rd quarter 2004: EUR 7,155 million).
*** Tangible and intangible fixed assets
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 BASF's 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.
-- Important Dates
-- February 22, 2006 Financial Results 2005
-- May 4, 2006 Annual Meeting, Mannheim Interim Report First
Quarter 2006
-- August 2, 2006 Interim Report Second Quarter 2006
-- November 2, 2006 Interim Report Third Quarter 2006
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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: November 2, 2005 By:/s/ Elisabeth Schick
------------------------------------
Name: Elisabeth Schick
Title: Director Site Communications Ludwigshafen
and Europe
By:/s/ Christian Schubert
------------------------------------
Name: Christian Schubert
Title: Director Corporate Communications
BASF Group