BASF has posted a sales increase of 14% to €10.6 billion for the second quarter of 2005 compared with the same period in 2004. Cumulative sales in the first half of 2005 amounted to €20.7 billion, almost 13% more than in the same period of the previous year.

The company stated that sales growth was primarily due to price increases, and although raw material costs were volatile and rose continuously, BASF succeeded in gradually raising its margins to the necessary level.

During his presentation of the results, BASF Chairman Dr. Jürgen Hambrecht said, Prices for raw materials and for crude oil in particular, have reached unprecedented levels. Economic growth remains weak in many parts of Europe. The geopolitical situation remains tense.” However, he maintained that the chemical industry is likely to continue on a growth path in the second half of the year, at approximately 3% percent, however, he anticipates production growth for the full year to be slower than in the record year 2004, which represents a very high baseline for further growth. The strongest impulses for growth are again likely to continue to come from North America and Asia.

Based on this forecast, the company has raised its outlook for the full year 2005: We are expecting significantly higher sales and an increase in EBIT before special items compared with our already strong performance in 2004.” Mr Hambrecht said.