FLORHAM PARK, N.J. – BASF's North American business today reported that income from operations before special items in the second quarter rose to approximately $424.7 million – a 65 percent increase over the same quarter last year. The company's continuing efforts to reduce costs and increase margins were credited for the gain. Find information about BASF's turf and ornamental business by visiting www.turffacts.com.
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Second quarter sales in North America were approximately $3.13 billion, up 17 percent from the second quarter of 2004.
The improvement in results despite high energy and raw material costs is due to solid economic growth in North America, the impact of the restructuring program that began in 2002, and continued focus on increasing margins.
For the first six months of 2005, North American earnings from operations before special items were approximately $752.6 million, twice the earnings for the first half of 2004. North American sales for the first six months were $5.87 billion, up 18 percent from the same period a year ago.
“In the second quarter, BASF achieved the goal that we set in 2003 of $250 million in sustainable annual earnings improvements through fixed cost reductions in North America,” said Klaus Peter Loebbe, chairman and CEO of BASF Corp., the North American affiliate of BASF AG. “We reached this goal one year earlier than scheduled due to focused implementation of our targeted restructuring measures.”
Loebbe added, “Since 2002, we have made a number of portfolio changes, restructured our service platform, optimized our plants and site locations, invested in new technology to streamline operations, and improved business processes. To date, we have sold or closed 11 sites and 12 plants, integrated six acquired sites, and started up seven new plants. Looking ahead, we will continue to enhance our effectiveness, work closely with customers to deliver value, and exploit acquisition opportunities.”
Note: Dollar amounts are approximate because BASF AG reports financial results in euros. References to U.S. dollars are made using an exchange rate of 1 euro = $1.21 at the close of the quarter and are provided for the reader’s convenience.
BASF Corporation, headquartered in New Jersey, is the North American affiliate of BASF AG, Ludwigshafen, Germany.