BASF confident for 2008

Jürgen Hambrecht is looking ahead with hope to next year. "Everything that we can see today points to an optimistic outlook for 2008", said the Board Chairman of the worlds largest chemicals group BASF to an audience of journalists.

Hambrecht, who has headed the group since 2003, drew a positive half-time balance on the effects that he has had so far. In that time, turnover has increased by around 80 per cent, and the result has more than doubled. BASF has become "streamlined, fit and quicker", he said. He also stated that growth has been above the level of the market, even excluding acquisitions, and the share price has more than doubled.

He said that BASF is not looking for a "quick quarterly boost, but sustained success". The guideline value that he defines for the companys share price is to perform better than the MSCI World Index - "well do that too". At BASF, the index is also a measure of success for the drawing of share options. According to Hambrecht, surpassing the German share index DAX is not one of the companys aims.

Hambrecht explained that the groups performance in the current business quarter is weaker than some analysts had expected. The BASF boss explained that this is related to a later than expected start-up of chemicals plants that had been shut down earlier for maintenance, along with the fluctuating oil price. However, he also said that the aim for 2007 of achieving turnover growth of 10 per cent to around EUR58 billion and a result before interest, tax and special influences above last years record figure of EUR7.3 billion would be attained.

Hambrecht said that irrespective of the companys growth from its own strength, "we can support any acquisition when we want to and when it suits us". At the same time, areas of work that no longer meet the requirements will be sold off. At the present time, BASF wants to sell parts of its plastics business with turnover of EUR3.2 billion. Hambrecht announced measures to improve efficiency for all parts of the group. As part of the transformation of BASF AG into a European Company (SE) for example, the structures of the European national companies will be examined. The results are still open. The national companies may become representative offices or sales offices.

Hambrecht stated that in Europe, the "future well-being and course of the chemicals industry depends on innovations". BASF has increased its research expenditure by 40 per cent since 2004 and has set new main areas of emphasis. In agricultural chemicals for example, the money has been spent on research instead of taking over an overpriced seeds company. In a collaboration project with the American Monsanto group, license fees (among other things) will in future become a source of income in this sector.