FLORHAM PARK, N.J. – BASF's North American business today posted strong financial results for the first quarter 2005, continuing the company's trend of improved financial performance in the region. Earlier this month, BASF’s Hans Reiners, president, agricultural products and Bill Wisdom, group vice president, North America, gave members of the trade press a tour of the company’s North Carolina facility and shared positive outlooks for the company’s future.
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Regarding the business direction of BASF, Wisdom said the company will continue to focus on core competencies, deliver competitive products, set reasonable expectations, align business structure and manage costs. This adds to the success of BASF while helping its customers be more successful, according to Wisdom.
“To us, innovation is the most important factor in achieving success,” he said. “In order for us to be able to convince customers to buy a new … product, it must be significantly better than existing solutions. This applies to its biological effects and its reliability, to its economic benefits and – last but not least – to its safety regarding humans, animals and the environment. Combining these efforts is creating additional value – for our customers and for BASF.”
First quarter sales for BASF in North America were EUR 2.265 billion (approximately $2.94 billion), up 18 percent over the first quarter of 2004. Income from operations before special items in the first quarter of 2005 was EUR 271 million (approximately $352 million) up 201 percent from EUR 90 million in the first quarter of 2004.
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BASF's business in North America is benefiting from improved economic conditions that have resulted in higher prices and increased demand.
In addition, the North American restructuring initiative, “BASF 2015,” has contributed to the improved performance. The program, which began in 2002, includes efforts to optimize support functions, improve manufacturing operations, and streamline business processes. As of the end of 2004, the restructuring had achieved annual cost savings of about $175 million. Employment at BASF in North America has been reduced by approximately 4,000 positions as a result of the restructuring and other actions.
"Our restructuring initiative has proven very successful," said Klaus Peter Loebbe, chairman and chief executive officer of BASF Corp., BASF's North American affiliate. "Our 2004 and first quarter 2005 financial results clearly reflect the impact of these efforts to date. Our strategy in 2005 will be to continue a keen focus on improving productivity and efficiency, delivering greater customer value through innovation, and optimizing and strengthening our business portfolio."
Note: BASF Group reports financial results in Euros. References to U.S. dollars are made using an exchange rate of EUR1.00 = $1.30. This conversion is provided solely for the convenience of the reader.