BASF targets above market sales growth

25 June 2007 17:03  [Source: ICIS news]

LONDON (ICIS news)--BASF can grow at two percentage points above the market, helped by investments of €10.7bn ($14.5bn) over the next five years, senior executives told financial analysts on Monday.

BASF has earned a premium on its cost of capital and expects to at least earn its capital in any given year even if there is an economic downturn, chairman, Jurgen Hambrecht, said at an investor day in New York.

Shareholders would also benefit from BASF's strong performance and cash flow generation, he added.

The chemicals giant has increased its dividend in 10 of the past 12 years and aims for further pay-outs. Share buy-backs totalling €3bn are planned between 2007 and 2008.

"BASF is today the largest chemical company in the world by sales and market capitalisation, with a top three market position on over 75% of our businesses," Hambrecht said

“But we won’t rest on our laurels – our clear goal remains achieving profitable growth," he added.

BASF's portfolio is becoming less cyclical and is expected to have a larger share of customised solutions, he said.

The company highlighted its five growth clusters: energy management, nanotechnology; white (industrial biotechnology); plant biotechnology and raw material change.

($1 = €0.74)

By: Lucy Craymer
+44 20 8652 3214

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