6-K UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
March 17, 2004
BASF AKTIENGESELLSCHAFT
(Exact name of Registrant as Specified in its Charter)
BASF CORPORATION
(Translation of Registrant's name into English)
Carl Bosch Strasse 38, LUDWIGSHAFEN, GERMANY 67056
(Address of Principal Executive Offices)
Indicate by check mark whether the Registrant files or will file annual
reports under cover Form 20-F or Form 40-F
Form 20-F X Form 40-F
Indicate by check mark whether the Registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934.
Yes No X
If "Yes" is marked, indicate below the file number assigned to the
Registrant in connection with Rule 12g3-2(b): 82- .
BASF Expects Moderate Growth in 2004
LUDWIGSHAFEN, Germany--(BUSINESS WIRE)--March 17, 2004--
-- Sales rise substantially in 2003 despite negative currency
effects
-- EBIT before special items higher than in previous year
-- Fourth quarter substantially better than expected
-- Cash flow at record level
-- Agricultural Products & Nutrition increases sales and earnings
BASF's figures for 2003 clearly show that the tremendous hard work
by the company's employees worldwide has been successful: BASF
(NYSE:BF)(FWB:BAS)(LSE:BFA) has strengthened its position as the
world's leading chemical company. In a difficult market environment,
sales increased by 3.6 percent to EUR 33.4 billion. Excluding currency
effects, the growth would have been substantially higher and sales
would have reached EUR 35.7 billion.
The forecast made last November for income from operations (EBIT)
before special items was exceeded: It increased in 2003 by about 4
percent to almost EUR 3 billion. Cash provided by operating activities
reached a record level of EUR 4.9 billion.
EBIT in 2003 contained special charges of EUR 335 million. These
special charges were primarily related to restructuring measures taken
to increase efficiency as part of the Ludwigshafen Site Project.
Sales and earnings increased substantially in the Agricultural
Products & Nutrition and Oil & Gas segments. In the Chemicals,
Plastics and Performance Products segments, earnings were below the
previous year's level, but sales in some divisions increased.
"Even in very challenging times, BASF is and will remain a company
that investors can count on for its financial strength, a strong
potential for innovation and its reliability," said Dr. Jurgen
Hambrecht, Chairman of the Board of Executive Directors of BASF
Aktiengesellschaft at the company's Annual Press Conference in
Ludwigshafen on March 17, 2004.
Fourth quarter substantially better than expected
Business has picked up since last October, and sales in the fourth
quarter increased 6.5 percent to EUR 8.54 billion. Thanks to our
cost-savings program and improved capacity utilization, EBIT before
special items increased by more than 25 percent to EUR 814 million.
Outlook: Moderate growth in sight for 2004
According to Hambrecht, the medium-term prospects for the global
economy are now somewhat more favorable: "Throughout the world, the
economy seems to have bottomed out. Upward movement is increasing; the
growth markets in Asia and the United States are fueling the global
recovery process."
The company's forecast for 2004 is based on the following
scenario:
-- An improved investment climate and a gradually improving
consumer climate,
-- an average oil price of $28/barrel in 2004, and
-- a U.S. dollar that continues to be volatile and weak.
In parallel with the growing demand among industrial customers,
BASF expects that global economic activity in the chemicals industry
will pick up the pace somewhat. Once again, the main impulses will
come from Asia and to some extent from the United States. In general,
moderate growth is expected.
The figures for January and February 2004 indicate sales and EBIT
at the strong level seen in the previous year. Hambrecht said, "Based
on the conditions I have just mentioned, we expect slightly higher
sales and an increase in EBIT in 2004."
However, there are uncertainties in the future. For example, the
strong euro is acting as a noticeable brake on European exports. Oil
and raw material prices will remain at unexpectedly high levels and
will therefore also retard growth.
Hambrecht stated: "Nevertheless, instead of only seeing the
downside, we want to look ahead to the remainder of 2004 with somewhat
greater confidence. We will devote our fullest energies to those areas
that lie within our control. We will continue with our measures to
reduce costs and increase efficiency, as well as our efforts to reduce
operational assets. In 2004, as announced, we will reduce capital
expenditures to the level of depreciation."
BASF is the world's leading chemical company. Our goal is to grow
profitably and further increase the value of our company. We help our
customers to be more successful through intelligent system solutions
and high-quality products. BASF's portfolio ranges from chemicals,
plastics, performance products, agricultural products and fine
chemicals to crude oil and natural gas. Through new technologies we
can tap into additional market opportunities. We conduct our business
in accordance with the principles of sustainable development. In 2003,
BASF had sales of more than EUR 33 billion (circa $42 billion) and
over 87,000 employees worldwide. BASF shares are traded on the stock
exchanges in Frankfurt (BAS), London (BFA), New York (BF), Paris (BA)
and Zurich (AN). Further information on BASF is available on the
Internet at www.basf.com.
Information on the Annual Press Conference can be found on the
Internet at:
English: www.basf.de/pcon
German: www.basf.de/pk
You can download photos of BASF from the Internet at:
www.basf.de/pressphotos.
Forward-looking statements
This release contains forward-looking statements under the U.S.
Private Securities Litigation Reform Act of 1995. These statements are
based on current expectations, estimates and projections of BASF
management and currently available information. They are not
guarantees of future performance, involve certain risks and
uncertainties that are difficult to predict and are based upon
assumptions as to future events that may not prove to be accurate.
Many factors could cause the actual results, performance or
achievements of BASF to be materially different from those that may be
expressed or implied by such statements. Such factors include those
discussed in BASF's Form 20-F filed with the Securities and Exchange
Commission. We do not assume any obligation to update the
forward-looking statements contained in this release.
CONTACT: BASF Aktiengesellschaft
Michael Grabicki
Phone: +49 621 60-99938
Fax: +49 621 60-92693
michael.grabicki@basf-ag.de
or
Corporate Media Relations
Phone: +49 621 60-20710
Fax: +49 621 60-92693
presse.kontakt@basf-ag.de
http://www.basf.de
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Current Report to be signed on its behalf by
the undersigned, thereunto duly authorized.
BASF Aktiengesellschaft
Date: March 17, 2004 By: /s/ Elisabeth Schick
------------------------------------
Name: Elisabeth Schick
Title: Director Site Communications Ludwigshafen
and Europe
By: /s/ Christian Schubert
------------------------------------
Name: Christian Schubert
Title: Director Corporate Communications
BASF Group