‘I am confident that BASF will achieve its goals for 2008 despite the rise in oil prices and the associated significant increase in raw material prices,’ said Dr Jürgen Hambrecht, chairman of BASF. ‘Assuming that there are no changes to BASF’s portfolio, we aim to increase sales and to improve EBIT before special items slightly in 2008.’
At the same time, BASF presented a long-term financial goal: For the next five years, the BASF Group aims to achieve an EBITDA margin of 18%. This goal is based on the following long-term assumptions: an unchanged portfolio, an oil price (Brent) of $100 per barrel and an exchange rate of $1.40 to $1.50 per euro. In the same period, BASF aims to post average volume growth two percentage points above the chemical market.
Against the background of an increasingly difficult global economic environment, Hambrecht pointed out the advantages of having a portfolio focused on profitable growth markets over the past years. For example, specialty products, which are faster growing than commodities, now account for 63% of sales (excluding Oil & Gas and precious metals trading) compared with 54% in 2003. As a result, BASF is now in a better position to deal with economic fluctuations than in the past. The company’s acquisitions of Engelhard, Degussa Construction Chemicals and Johnson Polymer in 2006 have contributed substantially to this development.
New products and the use of innovative processes are expected to contribute significantly to growth in the coming years. In terms of patents, BASF is a global leader with a portfolio of almost 130,000 patents and patent applications.
