BASF reported 2.8% year-on-year increase in Q4 2011 net profit

(basf) -- BASF significantly surpassed the record levels of 2010 in sales and earnings, and thus again earned a high premium on its cost of capital in 2011. Compared with 2010, sales increased by 15% to EUR73.5 billion. All regions contributed to this increase. Income from operations (EBIT) before special items improved by 4% to EUR8.4 billion and EBIT increased almost 11% to EUR8.6 billion.
 
At the Annual Press Conference, Dr. Kurt Bock, Chairman of the Board of Executive Directors of BASF said: "2011 was another very successful year for BASF. Thus we are continuing our ambitious dividend policy and will, therefore, again propose a higher dividend of EUR2.50 at the Annual Meeting. This is an increase of EUR0.30 or 13.6% compared with the previous year." 
 

At around EUR18.1 billion, sales in the fourth quarter of 2011 were higher than in the fourth quarter of 2010, as well as in the third quarter of 2011. However, the slowing of the economy over the course of the year was reflected in the EBIT before special items, which at EUR1.5 billion was 14% below the fourth quarter of 2010. The trend that the company observed at the beginning of the second half of the year continued. Customers were more cautious in their ordering, reduced their inventories and put off orders in expectation that the economy would decline and prices could possibly soften.

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