BASF beats expectations
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BASF chemical plant in Antwerp, Belgium
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LUDWIGSHAFEN, Germany (Reuters) -- Europe's biggest chemicals group BASF AG on Tuesday reported a fourth-quarter operating profit before exceptional items of 650 million euros ($701.6 million), beating analysts' expectations.
BASF said in a statement that sales for the period rose to 8.017 billion euros from 7.683 billion a year earlier.
BASF said it expected higher sales and significantly higher earnings before interest and tax (EBIT) in the first quarter of 2003 but sales in the second quarter would come in around last year's level with a lower incremental rise in profit.
A Reuters poll of analysts had predicted fourth-quarter 2002 EBIT before exceptional items would rise to 537 million euros from 252 million a year earlier, on sales of 7.88 billion.
The company said it had got off to a good start to the current year, with year-to-date sales up versus the first two months of 2002, which were weak.
The statement quoted Chief Executive Juergen Strube as saying that this could not necessarily be taken as an indication of how things would continue as the year progressed, partly due to uncertainty surrounding Iraq.
BASF said that sales in chemicals rose 18 percent in the whole of 2002, and sales in petrochemicals rose by even more due to the commissioning of a new steam cracker in Texas.
Sales in plastics and fibres rose 3.6 percent and sales in performance products dipped slightly, the company said, adding that the performance of the agricultural products segment -- where sales fell more than 15 percent -- was unsatisfactory.
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