24 February 2012 13:55 [Source: ICIS news]
LUDWIGSHAFEN, Germany (ICIS)--BASF aims to increase sales to around €85bn ($113bn) by 2015 and €115bn by 2020, with strong growth expected in all regions, the chairman of the German chemical company said on Friday.
Speaking at BASF’s annual financial press conference, chairman Kurt Bock said the company aims to exceed 2011’s record sales levels in 2012 and the following years to 2020.
Earlier on Friday BASF reported fourth-quarter net income of €1.13bn from €1.10bn in the same period a year earlier, as sales grew by 10% year on year in the quarter to €18.1bn.
“Excluding the effects of acquisitions and divestitures, BASF wants to increase sales volumes. The company aims to exceed the 2011 record levels in sales and EBIT [earnings before interest and tax] before special items,” Bock said.
“We expect the global economy to pick up speed over the course of 2012 following a moderate start,” he said.
Bock added that positive impetus for the chemical industry will mainly come from emerging markets.
The company said by 2020 it aims to increase sales to customers in emerging markets to around 45% of total sales, excluding oil and gas.
BASF said it expects all regions to contribute to its sales target over the next eight years.
“[We expect] Europe [will reach] $53bn in sales in 2020, Asia Pacific with €29bn, North America with €22bn and South America, Africa, Middle East with €11bn,” it added.
The company said it intends to grow two percentage points faster than global chemical production and will increase sales by an average of 6% per year until 2020.
To enhance its chemical activities, the company also plans capital expenditures of €30bn–€35bn between 2011 and 2020, with more than a third of this sum being invested in emerging markets, it said.
($1 = €0.75)
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