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Chemical reaction

February 24, 2012

The world's largest chemical company, BASF, booked record earnings last year despite soaring material costs and decreasing demand globally. Fresh investments are earmarked to secure a profitable 2012.

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Image: BASF

Ludwigshafen-based German chemical giant BASF announced on Friday that its net income rose by 35.8 percent last year, equaling 6.19 billion euros ($8.23 billion). Sales increased by 15 percent to reach 73.5 billion euros.

BASF - a producer of chemicals, plastics, agricultural herbicides, fertilizers and a variety of oil and gas-based products - saw revenues increase 10 percent in the last quarter of 2011 alone, a slight improvement on sales period-on-period.

Rising material prices and weaker demands on some of BASF's critical markets prevented the company from logging even bigger earnings throughout last year. But the market leader is poised to have another go at record sales and profits in the current year.

"We expect the global economy to pick up speed over the course of 2012, following a moderate start, BASF's new Chief Executive Kurt Bock said in a statement.

Optimism beats uncertainties

Bock said he foresaw an economic rebound despite ongoing worries over the impact of too much public debt in Europe and the United States. He hoped that the company's oil and gas unit earnings would be helped as production in Libya - which had been interrupted by civil war – picks up.

Last year, BASF increased its investment in new installations by 860 million euros to total 3.4 billion euros. New chemical production facilities were opened at Geismar in Louisiana, USA, and Antwerp in Belgium.

BASF currently employs 111,140 workers around the globe, following a 1.8 percent increase in the workforce last year.

hg/ gb (dpa, Reuters, AP)