Strong demand helped lift volume sales of plastics at BASF (D-67056 Ludwigshafen; www.basf.com) by 12% in 2002 against 2001. However, part of the growth was due to restocking by converters and distributors, who had “reduced inventories dramatically,” managing board member John Feldmann said at the annual results press conference. While the resulting good capacity utilisation helped boost earnings, Feldmann said these effects were largely offset by higher raw materials costs, lower selling prices and negative currency effects. The Plastics and Fibres division´s 44% rise in EBIT to EUR 593m mainly reflects BASF´s own efficiency improvement scheme, he said. Divisional turnover rose 3.6% to EUR 8.5 bn.

Despite difficult trading conditions for plastics in 2002, Feldmann said BASF took “further steps” toward its goal of becoming the most profitable manufacturer. He said the group is “actively shaping” the market and strengthening its own portfolio by focusing on business areas where “we can generate unique value for our customers.” Feldmann pointed to the planned acquisition of Honeywell´s (Morristown, New Jersey / USA; www.honeywell.com) nylon-based engineering plastics business as an example. He said BASF also will continue to shut down unprofitable production facilities and optimise its regional portfolio, especially in Asia, where it wants to keep pace with market growth of 6% annually.

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