BASF profit soars as economic recovery sets in

BASF - Going Full Steam Ahead

BASF – Going Full Steam Ahead

The improving global economic environment helped the German chemicals company BASF more than trebled its annual profits in 2010 over the previous year.

Net profit for the last quarter jumped to €1.1 billion (£931 million, $1.5 billion) from €455 million reported over the same period, a year earlier.

BASF reported a net profit of €4.56 billion for the full year in 2010 compared to €1.4 billion in 2009.

The expressed concern over the ongoing turmoil in Libya stating: “With respect to Libya, BASF hopes that the situation will calm down soon”.

Its subsidiary Wintershall has oil interests in the troubled country. The company had announced suspension of operations in Libya on Wednesday.

Commenting on the company’s performance, chief executive Juergen Hambrecht said: “(BASF was) able to take advantage of the strong economic recovery in 2010, which was more dynamic than we all initially expected”.

It was able to pass on the higher cost of raw materials to consumers rather than absorbing it, thus maintaining profitability, BASF said in a statement.

The company was confident of a robust sales growth in 2011, it said.

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