BASF Expects Record Year in 2010

BASF has announced first figures for the third quarter of 2010 and raised its outlook for the full year. Compared with the same quarter of the previous year, third-quarter sales increased 23% to €15.8 billion, EBIT before special items rose 77% to €2.2 billion and EBIT increased 122% to €2.15 billion.The figures are at the same high level of the second quarter of 2010.

Sales in the first nine months of 2010 rose 27% to €47.5 billion, EBIT before special item increased 89% to €6.4 billion and EBIT by 127% to €6.1 billion.

For the fourth quarter, the company expects the good business development to continue and has raised its outlook for the current year. For 2010, BASF expects sales of around €63 billion and EBIT before special items of over €8 billion. This exceeds the peak levels of the years 2007 and 2008.

BASF will publish its third-quarter report on Oct. 28.

In spite of the current good results, BASF Chairman Jürgen Hambrecht said he sees a number of uncertainties in the long-term economic outlook.

"The positive economic development of the past months will not necessarily continue at the same pace in 2011. Risks also remain which could jeopardize a sustainable recovery," he said. "The high debt level of many countries threatens the stability of the financial and banking systems. The necessary reduction in government spending and the winding down of national stimulus programs could dampen overall demand."

Risks are also associated with volatile raw material and foreign currency markets, overcapacities, growing geopolitical tensions and protectionism through new trade barriers.