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
February 22, 2006
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 On Course for Further Success: Record Earnings In 2006 - Optimistic For
2007
-- Record sales (plus 23 percent) and EBIT before special items
(plus 18 percent) in 2006
-- Premium of EUR 2.1 billion earned on cost of capital
-- New business areas strengthen BASF
-- Outlook: BASF confident for full-year 2007
Business Editors
LUDWIGSHAFEN, Germany--(BUSINESS WIRE)--Feb. 22, 2007--In 2006,
BASF - The Chemical Company (NYSE:BF)(FWB:BAS)(LSE:BFA) reached
important goals. For the first time in the company's history, sales
passed the EUR 50 billion mark, and income from operations (EBIT)
before special items climbed to a new record of more than EUR 7.2
billion.
"Our ambitious team has achieved this using its own strength. The
economic tailwind also aided us. Our value-enhancing acquisitions in
the areas of catalysts, construction chemicals and resins for paint
and printing systems have helped us to grow in highly innovative areas
and have brought us closer to our customers. At the same time, we have
broadened our competence and have become more resilient to
cyclicality," said BASF's Chairman, Dr. Jurgen Hambrecht, at the
company's Annual Press Conference in Ludwigshafen, Germany.
In 2006, BASF again earned a high premium of EUR 2.1 billion on
its cost of capital and grew faster than the market. Sales increased
by 23 percent to almost EUR 53 billion. The businesses acquired in
2006 contributed EUR 4.2 billion to this amount. EBIT before special
items climbed 18 percent to more than EUR 7.2 billion.
BASF is making good progress in integrating the businesses it
acquired in 2006 and is on track to largely complete the process as
planned by the middle of 2007. The company expects to achieve full
synergies of approximately EUR 290 million per year by 2010. This
amount is significantly higher than expected.
Optimistic outlook for 2007: Strong sales growth
Hambrecht's outlook for the further course of 2007 was positive.
BASF is basing its business planning for 2007 on the following
assumptions:
-- Global economic growth of 3.2 percent and a similar increase
in global chemical production (excluding pharmaceuticals)
-- An average oil price of around $55/barrel for Brent crude with
a downward trend in the following years
-- An average euro/dollar exchange rate of $1.30 per euro
-- Moderately higher interest rates in the course of the year,
primarily in Europe
"In 2007, we want to further expand our position as the world's
leading chemical company. We want to further increase BASF's value and
again earn an attractive premium on our cost of capital. We will
derive additional energy from the newly acquired businesses, from our
investments in growth markets and from our broadened research and
development activities," said Hambrecht.
For the full year, BASF expects significantly higher sales in 2007
compared with 2006. This will be driven by both the businesses
acquired in 2006 as well as organic growth in the company's existing
businesses. Despite the significant decline in the price of oil and
the associated impact on the earnings of the Oil & Gas segment, BASF
has set itself the ambitious goal of at least matching the record
level of EBIT before special items that it posted in 2006. Due to the
sustained strengthening of its earnings power, BASF expects to at
least earn its cost of capital in any given year, irrespective of the
economic situation.
BASF's Chief Financial Officer, Dr. Kurt Bock, noted that BASF
improved earnings at all levels of the income statement compared with
its strong performance in 2005. "The company's financial strength -
measured in terms of cash provided by operating activities - increased
further. In combination with a solid balance sheet, this provides us
with the financial leeway we need," he said. Bock also pointed out
that BASF bought back shares for almost EUR 1 billion in 2006 and was
planning to buy back additional shares in 2007 under the ongoing
program.
Chemicals segment posts record sales
The Chemicals segment posted record sales of EUR 11.6 billion.
This 43 percent increase was due in particular to the first-time
inclusion of the new Catalysts division. EBIT before special items
reached a new high of EUR 1.7 billion.
Higher volumes and price increases led to an improvement in sales
and EBIT before special items in the Plastics segment. Sales rose by
9 percent to EUR 12.8 billion, while EBIT before special items climbed
18 percent to EUR 1.2 billion.
Sales in the Performance Products segment rose by 23 percent to
more than EUR 10 billion as a result of the newly acquired businesses.
EBIT before special items declined, however, due to integration and
restructuring costs and declining margins, in particular for acrylic
monomers.
Sales in the Agricultural Products & Nutrition segment were at
approximately the previous year's level segment (minus 2 percent),
while EBIT before special items declined (minus 37 percent).
Unfavorable weather conditions for the use of fungicides, low
prices for agricultural produce and high energy costs negatively
impacted BASF's business with crop protection products in important
agricultural regions.
Sales and EBIT before special items rose in the Fine Chemicals
division, but EBIT declined as a result of extensive restructuring
measures.
BASF expects this segment's earnings to improve significantly in
2007 thanks to its portfolio of innovative crop protection products
and its restructuring efforts in the Fine Chemicals division.
The increase in prices for crude oil and natural gas and the
expansion of the gas trading business meant that sales and EBIT before
special items in the Oil & Gas segment reached new record levels of
EUR 10.7 billion and EUR 3.2 billion, respectively.
BASF will publish its Financial Report and Corporate Report on
March 14, 2007.
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
high-value products and intelligent system solutions help its
customers to be more successful. BASF develops new technologies and
uses them to meet the challenges of the future and open up additional
market opportunities. It combines economic success with environmental
protection and social responsibility, thus contributing to a better
future. BASF has over 95,000 employees and posted sales of EUR
52.6 billion in 2006. 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.
On February 22, 2007 you can obtain further information on the
Internet at the following addresses:
Annual press conference report (from 7:30 a.m. CET)
corporate.basf.com/pcon-report (English)
corporate.basf.com/pk-bericht (German)
Press release (from 7:30 a.m. CET)
corporate.basf.com/pressrelease (English)
corporate.basf.com/pressemitteilungen (German)
Live transmission Annual Press Conference
(from 10:30 a.m. CET)
corporate.basf.com/pcon (English)
corporate.basf.com/pk (German)
Speech Dr. Jurgen Hambrecht/Dr. Kurt Bock
(from 10:30 a.m. CET)
corporate.basf.com/pcon (English)
corporate.basf.com/pk (German)
Photos from the Annual Press Conference
(from 1:00 p.m. CET)
corporate.basf.com/photos (English)
corporate.basf.com/fotos (German)
Live transmission Analyst Conference (from 3:00 p.m. CET)
corporate.basf.com/share (English)
corporate.basf.com/aktie (German)
Information about BASF shares
corporate.basf.com/share (English)
corporate.basf.com/aktie (German)
Note to Editors:
You can also access our Corporate Press Photo DVD on the Internet:
corporate.basf.com/pressphoto-cd (English)
corporate.basf.com/pressefoto-cd (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.
Important figures from Annual Press Conference Report
---------------------------------------------------------------------
Change
Million EUR 2006 2005 in %
--------------------------------------------- ------- -------- ------
Sales 52,610 42,745 23.1
--------------------------------------------- ------- -------- ------
Income from operations before interest,
taxes, depreciation
and amortization (EBITDA) 9,723 8,233 18.1
--------------------------------------------- ------- -------- ------
Income from operations (EBIT) before special
items 7,257 6,138 18.2
--------------------------------------------- ------- -------- ------
Income from operations (EBIT) 6,750 5,830 15.8
--------------------------------------------- ------- -------- ------
Income before taxes and minority interests 6,527 5,926 10.1
--------------------------------------------- ------- -------- ------
Net income 3,215 3,007 6.9
--------------------------------------------- ------- -------- ------
Earnings per share (EUR ) 6.37 5.73 11.2
--------------------------------------------- ------- -------- ------
Income from operations (EBIT) in percent of
sales 12.8 13.6 -
--------------------------------------------- ------- -------- ------
Cash provided by operating activities 5,940 5,250(3) 13.1
--------------------------------------------- ------- -------- ------
Additions to long-term assets(1) 10,039 2,523 297.9
--------------------------------------------- ------- -------- ------
Excluding acquisitions 2,425 1,937 25.2
--------------------------------------------- ------- -------- ------
Amortization and depreciation(1) 2,973 2,403 23.7
--------------------------------------------- ------- -------- ------
Segment assets (as of December 31)(2) 38,599 29,180 32.3
--------------------------------------------- ------- -------- ------
Personnel costs 6,210 5,574 11.4
--------------------------------------------- ------- -------- ------
Number of employees (as of December 31) 95,247 80,945 17.7
--------------------------------------------- ------- -------- ------
(1) Intangible assets and property, plant and equipment (including
acquisitions)
(2) Intangible assets and property, plant and equipment,
inventories and business-related receivables
(3) Before external financing of pension obligations
Segment Reporting
Million EUR Sales EBITDA
------------------------------- -------------- ------- ------- -------
4th Quarter 2006 2005 in % 2006 2005 in %
------------------------------- -------------- ------- ------- -------
Chemicals 3,448 2,211 55.9 775 513 51.1
------------------------------- -------------- ------- ------- -------
Plastics 3,260 3,037 7.3 379 342 10.8
------------------------------- -------------- ------- ------- -------
Performance Products 2,830 2,155 31.3 209 258 (19.0)
------------------------------- -------------- ------- ------- -------
Agricultural Products &
Nutrition 1,196 1,203 (0.6) 152 174 (12.6)
------------------------------- -------------- ------- ------- -------
Agricultural Products 718 720 (0.3) 116 181 (35.9)
------------------------------- -------------- ------- ------- -------
Fine Chemicals 478 483 (1.0) 36 (7) .
------------------------------- -------------- ------- ------- -------
Oil & Gas 3,105 2,536 22.4 946 886 6.8
------------------------------- -------------- ------- ------- -------
Other(a) 635 578 9.9 119 49 142.9
------------------------------- -------------- ------- ------- -------
14,474 11,720 23.5 2,580 2,222 16.1
------------------------------- -------------- ------- ------- -------
Full Year
------------------------------- -------------- ------- ------- -------
Chemicals 11,572 8,103 42.8 2,235 1,942 15.1
------------------------------- -------------- ------- ------- -------
Plastics 12,775 11,718 9.0 1,715 1,504 14.0
------------------------------- -------------- ------- ------- -------
Performance Products 10,133 8,267 22.6 1,177 1,227 (4.1)
------------------------------- -------------- ------- ------- -------
Agricultural Products &
Nutrition 4,934 5,030 (1.9) 847 996 (15.0)
------------------------------- -------------- ------- ------- -------
Agricultural Products 3,079 3,298 (6.6) 663 907 (26.9)
------------------------------- -------------- ------- ------- -------
Fine Chemicals 1,855 1,732 7.1 184 89 106.7
------------------------------- -------------- ------- ------- -------
Oil & Gas 10,687 7,656 39.6 3.766 2,859 31.7
------------------------------- -------------- ------- ------- -------
Other(a) 2,509 1,971 27.3 (17) (295) 94.2
------------------------------- -------------- ------- ------- -------
52,610 42,745 23.1 9,723 8,233 18.1
------------------------------- -------------- ------- ------- -------
Research and
development
4th Quarter expenses Assets (b)
---------------------------------------------- ------- --
Chemicals 66 25 164.0 10,473 6,146 70.4
------------------------------- -------------- ------- ------- -------
Plastics 34 33 3.0 6,911 6,639 4.1
------------------------------- -------------- ------- ------- -------
Performance Products 85 62 37.1 9,727 4,863 100.0
------------------------------- -------------- ------- ------- -------
Agricultural Products &
Nutrition 105 97 8.2 6,054 6,637 (8.8)
------------------------------- -------------- ------- ------- -------
Agricultural Products 89 80 11.3 4,458 5,156 (13.5)
------------------------------- -------------- ------- ------- -------
Fine Chemicals 16 17 (5.9) 1,596 1,481 7.8
------------------------------- -------------- ------- ------- -------
Oil & Gas . . . 5,434 4,895 11.0
------------------------------- -------------- ------- ------- -------
Other (a) 77 73 5.5 6,692 6,490 3.1
------------------------------- -------------- ------- ------- -------
367 290 26.6 45,291 35,670 27.0
------------------------------- -------------- ------- ------- -------
Full Year
------------------------------- -------------- ------- ------- -------
Chemicals 178 114 56.1 10,473 6,146 70.4
------------------------------- -------------- ------- ------- -------
Plastics 145 135 7.4 6,911 6,639 4.1
------------------------------- -------------- ------- ------- -------
Performance Products 288 214 34.6 9,727 4,863 100.0
------------------------------- -------------- ------- ------- -------
Agricultural Products &
Nutrition 404 373 8.3 6,054 6,637 (8.8)
------------------------------- -------------- ------- ------- -------
Agricultural Products 334 303 10.2 4,458 5,156 (13.5)
------------------------------- -------------- ------- ------- -------
Fine Chemicals 70 70 . 1,596 1,481 7.8
------------------------------- -------------- ------- ------- -------
Oil & Gas . 1 (100.0) 5,434 4,895 11.0
------------------------------- -------------- ------- ------- -------
Other (a) 262 227 15.4 6,692 6,490 3.1
------------------------------- -------------- ------- ------- -------
1,277 1,064 20.0 45,291 35,670 27.0
------------------------------- -------------- ------- ------- -------
Segment Reporting
Million EUR EBIT before special items EBIT
------------------------------------------------------- ------ -------
4th Quarter 2006 2005 in % 2006 2005 in %
------------------------------- ------ ------ ------ ------ -------
Chemicals 592 379 56.2 571 296 92.9
------------------------------- ------ ------ ------ ------ -------
Plastics 253 221 14.5 241 207 16.4
------------------------------- ------ ------ ------ ------ -------
Performance Products 152 177 (14.1) 33 148 (77.7)
------------------------------- ------ ------ ------ ------ -------
Agricultural Products &
Nutrition 74 118 (37.3) (55) 58 (194.8)
------------------------------- ------ ------ ------ ------ -------
Agricultural Products 54 124 (56.5) 58 118 (50.8)
------------------------------- ------ ------ ------ ------ -------
Fine Chemicals 20 (6) . (113) (60) (88.3)
------------------------------- ------ ------ ------ ------ -------
Oil & Gas 780 753 3.6 780 753 3.6
------------------------------- ------ ------ ------ ------ -------
Other(a) 16 (57) . 96 20 380.0
------------------------------- ------ ------ ------ ------ -------
1,867 1,591 17.3 1,666 1,482 12.4
------------------------------- ------ ------ ------ ------ -------
Full Year
------------------------------- ------ ------ ------ ------ -------
Chemicals 1,704 1,488 14.5 1,380 1,326 4.1
------------------------------- ------ ------ ------ ------ -------
Plastics 1,216 1,031 17.9 1,192 1,015 17.4
------------------------------- ------ ------ ------ ------ -------
Performance Products 848 890 (4.7) 669 863 (22.5)
------------------------------- ------ ------ ------ ------ -------
Agricultural Products &
Nutrition 435 693 (37.2) 381 623 (38.8)
------------------------------- ------ ------ ------ ------ -------
Agricultural Products 378 671 (43.7) 447 681 (34.4)
------------------------------- ------ ------ ------ ------ -------
Fine Chemicals 57 22 159.1 (66) (58) (13.8)
------------------------------- ------ ------ ------ ------ -------
Oil & Gas 3,245 2,410 34.6 3,250 2,410 34.9
------------------------------- ------ ------ ------ ------ -------
Other(a) (191) (374) 48.9 (122) (407) 70.0
------------------------------- ------ ------ ------ ------ -------
7,257 6,138 18.2 6,750 5,830 15.8
------------------------------- ------ ------ ------ ------ -------
Additions to long-term Amortization and
4th Quarter assets (b) depreciation (c)
------------------------------------------------ ---------------------
Chemicals 227 105 116.2 204 217 (6.0)
------------------------------- ------ ------ ------ ------ -------
Plastics 194 175 10.9 138 135 2.2
------------------------------- ------ ------ ------ ------ -------
Performance Products 217 98 121,4 176 110 60.0
------------------------------- ------ ------ ------ ------ -------
Agricultural Products &
Nutrition 56 199 (71.9) 207 116 78.4
------------------------------- ------ ------ ------ ------ -------
Agricultural Products 35 26 34.6 58 63 (7.9)
------------------------------- ------ ------ ------ ------ -------
Fine Chemicals 21 173 (87.9) 149 53 181.1
------------------------------- ------ ------ ------ ------ -------
Oil & Gas 177 268 (34.0) 166 133 24.8
------------------------------- ------ ------ ------ ------ -------
Other (a) 115 58 98.3 23 29 (20.7)
------------------------------- ------ ------ ------ ------ -------
986 903 9.2 914 740 23.5
------------------------------- ------ ------ ------ ------ -------
Full Year
------------------------------- ------ ------ ------ ------ -------
Chemicals 3,539 639 453.8 855 616 38.8
------------------------------- ------ ------ ------ ------ -------
Plastics 631 490 28.8 523 489 7.0
------------------------------- ------ ------ ------ ------ -------
Performance Products 4,490 347 . 508 364 39.6
------------------------------- ------ ------ ------ ------ -------
Agricultural Products &
Nutrition 466 296 57.4 466 373 24.9
------------------------------- ------ ------ ------ ------ -------
Agricultural Products 88 74 18.9 216 226 (4.4)
------------------------------- ------ ------ ------ ------ -------
Fine Chemicals 378 222 70.3 250 147 70.1
------------------------------- ------ ------ ------ ------ -------
Oil & Gas 545 624 (12.7) 516 449 14.9
------------------------------- ------ ------ ------ ------ -------
Other (a) 368 127 189.8 105 112 (6.3)
------------------------------- ------ ------ ------ ------ -------
10,039 2,523 297.9 2,973 2,403 23.7
------------------------------- ------ ------ ------ ------ -------
(a) "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 23 million in the fourth quarter (previous
year: EUR 23 million) and EUR 86 million in 2006 (previous
year: EUR (97) million)).
(b) "Other" includes, in addition to the assets of the fertilizers
business and other businesses, assets that are not allocated
to the segments (financial assets, cash and cash and cash
equivalents, marketable securities, financial receivables,
deferred tax assets: December 31, 2006: EUR 4,642 million;
December 31, 2005: EUR 4,755 million).
(c) Additions to property, plant and equipment and intangible
assets, adjusted as of September 30, 2006 following the
purchase price allocations relating to the acquisitions of
Engelhard Corp. and the construction chemicals business.
Regions Sales by Sales by
location of company location of customer
Change Change
Million EUR 2006 2005 in % 2006 2005 in %
--------------------- ------- ------- ------ ------- ------- ------ -
4th Quarter
--------------------- ------- ------- ------ ------- ------- ------ -
Europe 8,733 7,011 24.6 8,141 6,639 22.6
--------------------- ------- ------- ------ ------- ------- ------ -
Thereof Germany 6,365 4,722 34.8 3,277 2,514 30.4
--------------------- ------- ------- ------ ------- ------- ------ -
North America (NAFTA) 2,852 2,401 18.8 2,904 2,382 21.9
--------------------- ------- ------- ------ ------- ------- ------ -
Asia Pacific 2,108 1,647 28.0 2,309 1,754 31.6
--------------------- ------- ------- ------ ------- ------- ------ -
South America,
Africa, Middle East 781 661 18.2 1,120 945 18.5
--------------------- ------- ------- ------ ------- ------- ------ -
14,474 11,720 23.5 14,474 11,720 23.5
--------------------- ------- ------- ------ ------- ------- ------ -
Full Year
--------------------- ------- ------- ------ ------- ------- ------ -
Europe 31,444 25,093 25.3 29,529 23,755 24.3
--------------------- ------- ------- ------ ------- ------- ------ -
Thereof Germany 22,963 17,100 34.3 11,062 8,865 24.8
--------------------- ------- ------- ------ ------- ------- ------ -
North America (NAFTA) 11,415 9,542 19.6 11,522 9,479 21.6
--------------------- ------- ------- ------ ------- ------- ------ -
Asia Pacific 7,450 6,042 23.3 8,102 6,500 24.6
--------------------- ------- ------- ------ ------- ------- ------ -
South America,
Africa, Middle East 2,301 2,068 11.3 3,457 3,011 14.8
--------------------- ------- ------- ------ ------- ------- ------ -
52,610 42,745 23.1 52,610 42,745 23.1
--------------------- ------- ------- ------ ------- ------- ------ -
Regions Income from
operations
(EBIT)
Change
Million EUR 2006 2005 in %
--------------------------------------------- ------- ------ ------
4th Quarter
--------------------------------------------- ------- ------ ------
Europe 1,343 1,246 7.8
--------------------------------------------- ------- ------ ------
Thereof Germany 995 903 10.2
--------------------------------------------- ------- ------ ------
North America (NAFTA) 189 123 53.7
--------------------------------------------- ------- ------ ------
Asia Pacific 32 (6) .
--------------------------------------------- ------- ------ ------
South America, Africa, Middle East 102 119 (14.3)
--------------------------------------------- ------- ------ ------
1,666 1,482 12.4
--------------------------------------------- ------- ------ ------
Full Year
--------------------------------------------- ------- ------ ------
Europe 5,485 4,385 25.1
--------------------------------------------- ------- ------ ------
Thereof Germany 4,125 3,019 36.6
--------------------------------------------- ------- ------ ------
North America (NAFTA) 869 855 1.6
--------------------------------------------- ------- ------ ------
Asia Pacific 181 297 (39.1)
--------------------------------------------- ------- ------ ------
South America, Africa, Middle East 215 293 (26.6)
--------------------------------------------- ------- ------ ------
6,750 5,830 15.8
--------------------------------------------- ------- ------ ------
CONTACT: BASF
Daniel Smith, +49 621 60-20829
daniel.smith@basf.com
or
Michael Grabicki, +49 621 60-99938
michael.grabicki@basf.com
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
February 22, 2006 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