FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of August, 2000
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 of 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-__________)
Enclosure
<PAGE>
Second Quarter Results 2000
August 8, 2000
o Quarterly sales of Euro 9 billion (+24%) at record level
o Income from operations (on a comparable basis) rises 18%
o Strong growth in Plastics & Fibers
o Contribution to earnings from Asia almost tripled
<PAGE>
<TABLE>
<CAPTION>
BASF Group
------------------------------------------------------------------------------------------------------------
Million 2nd Quarter Change 1st Half Change
Euro 2000 1999 in % 2000 1999 in %
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Sales 8,969 7,235 + 24.0 17,439 14,008 + 24.5
Income from operations before special items 882 749 + 17.8 1,805 1,405 + 28.5
Income from operations 891 421 +111.6 1,858 992 + 87.3
Income before taxes 954 380 +151.1 1,886 932 +102.4
Net income 448 106 +322.6 912 429 +112.6
Earnings per share in Euro 0.73 0.17 +329.4 1.48 0.69 +114.5
Number of employees 104,882 106,054 - 1.1
------------------------------------------------------------------------------------------------------------
</TABLE>
Overview
Successful second quarter. Sales in the second quarter rose to a new record
figure of nearly Euro 9 billion. All operating segments contributed to this
performance with the sharpest increases being recorded by Plastics & Fibers and
Chemicals segments. We further expanded our business in all regions,
particularly in Asia.
Volumes were up by 7.5% in the second quarter. Higher selling prices and the
sharp rise in the price of oil resulted in a 12.6% increase in sales. The main
areas in which price increases were put through were Styrenic Polymers,
Petrochemicals and Inorganics and Fiber Products divisions.
Sales rose by 24.5% in the first half, although portfolio changes meant that we
lost a total of Euro 285 million, or 2% of sales, in particular as a result of
the divestiture of our oil marketing and refinery business.
Earnings
Income from operations before special items exceeded the previous year's figure
by 17.8%. The Oil & Gas and Plastics & Fibers segments, in particular, recorded
significant gains in earnings. However, a number of divisions were exposed to
noticeable pressure on margins as a result of increased raw materials prices. To
date, this effect has been only partially offset by increases in selling prices.
Factors influencing sales in comparison with the previous year
--------------------------------------------------------------------------------
1st Quarter 2nd Quarter 1st Half
--------------------------------------------------------------------------------
Volumes + 11.1 + 7.5 + 9.1
Prices + 9.6 + 12.6 + 11.2
Currency + 6.3 + 6.1 + 6.2
Scope of consolidation - 1.9 - 2.2 - 2.0
--------------------------------------------------------------------------------
Total + 25.1 + 24.0 + 24.5
--------------------------------------------------------------------------------
Future prospects
We expect the positive trend to continue during the second half. The additional
sales from American Cyanamid's crop protection business, which we acquired as of
July 1, will largely compensate for the sales of the polyolefin business being
transferred to the BASELL joint venture. However, one-time charges of about Euro
400 million resulting from the integration of American Cyanamid will affect
income in the second half. In addition, we expect further charges of about Euro
120 million, which will not reoccur in the following years. The charges are
related to the sale of inventory, which we acquired and revalued at market
prices. We expect to exceed our year-end target by increasing income from
operations by more than 10% on a comparable basis.
<TABLE>
<CAPTION>
Development of income before taxes
------------------------------------------------------------------------------------------------------
Million Euro 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
2000 1999 2000 1999 2000 1999 2000 1999
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Income before special items 888 637 846 708 624 826
Change in % +39.4 -25.8 +19.5 -12.6 +16.9 +123.2
Net special items 44 - 85 108 - 328 - 334 558
------------------------------------------------------------------------------------------------------
Income before taxes 932 552 954 380 290 1,384
------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Segments
Chemicals
In comparison with the second quarter of the previous year, we increased sales
by Euro 389 million or 37.2% and significantly improved earnings - even in
comparison with the previous quarter. The Petrochemicals & Inorganics division
doubled its sales. The margins for cracker products improved. In the other
divisions, demand was strong for most products and led to volume increases, but
higher raw material prices could only partially be passed on in the selling
prices.
<TABLE>
<CAPTION>
Sales by division
--------------------------------------------------------------------------------------
Million 1st Change 2nd Change 1st Change
Euro Quarter in % Quarter in % Half in %
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Petrochemicals and
Inorganics 272 +90.2 341 +104.2 613 +97.7
Industrial Chemicals 228 +39.9 237 + 26.7 465 +32.9
Intermediates 407 +17.6 438 + 18.4 845 +18.2
Specialty Chemicals 383 +29.0 419 + 30.1 802 +29.6
--------------------------------------------------------------------------------------
</TABLE>
Plastics & Fibers
Sales in the second quarter rose Euro 925 million or 45.6% compared to the same
period last year. This was the largest increase in sales achieved by any segment
in the second quarter. Earnings before special items also improved substantially
rising by Euro 95 million or 72.5% compared to the second quarter of 1999. The
Styrenic Polymers division increased both sales and earnings sharply as a result
of higher volumes and prices.
<TABLE>
<CAPTION>
Sales by division
--------------------------------------------------------------------------------------
Million 1st Change 2nd Change 1st Change
Euro Quarter in % Quarter in % Half in %
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Styrenic Polymers 635 +73.0 720 +65.9 1,355 +69.2
Engineering Plastics 406 +53.2 444 +42.8 850 +47.6
Polyurethanes 630 +24.8 683 +27.2 1,313 +26.0
Fiber Products 376 +40.8 423 +43.9 799 +42.4
Polyolefins 676 +51.9 684 +51.0 1,360 +51.4
--------------------------------------------------------------------------------------
</TABLE>
Colorants & Finishing Products
In the second quarter, we increased sales by Euro 193 million or 11.9% compared
with the same quarter last year. The improved sales by the Coatings and
Dispersions divisions resulted partly from the acquisitions of Rohm & Haas's
industrial coatings business and Chemdal's superabsorbents business. Income
before special items in the second quarter fell short of the strong performance
achieved in the same quarter last year. Especially in the Dispersions division,
the price increases implemented to date have not been sufficient to offset the
higher cost of raw materials. The Colorants division achieved a significant
improvement in earnings as a result of the successfully implemented
restructuring program.
<TABLE>
<CAPTION>
Sales by division
--------------------------------------------------------------------------------------
Million 1st Change 2nd Change 1st Change
Euro Quarter in % Quarter in % Half in %
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Colorants 580 +9.2 592 + 4.8 1,172 + 6.9
Coatings 511 +13.3 566 +16.9 1,077 +15.2
Dispersions 598 +12.0 662 +14.5 1,260 +13.3
--------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Segments
-----------------------------------------------------------------------------------------------------------------------------
Sales Income from Income from operations
operations before special items
-----------------------------------------------------------------------------------------------------------------------------
Change Change Change
Million Euro 2000 1999 in% 2000 1999 in % 2000 1999 in %
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2nd Quarter
Chemicals 1,435 1,046 +37.2 208 170 + 22.4 208 168 + 23.8
Plastics & Fibers 2,954 2,029 +45.6 219 133 + 64.7 226 131 + 72.5
Colorants & Finishing Products 1,820 1,627 +11.9 136 138 - 1.4 137 190 - 27.9
Health & Nutrition 1,725 1,546 +11.6 153 -138 . 137 171 - 19.9
Oil & Gas 760 624 +21.8 247 124 + 99.2 247 122 +102.5
Other 275 363 -24.2 -72 - 6 . -73 -33 -121.2
-----------------------------------------------------------------------------------------------------------------------------
8,969 7,235 +24.0 891 421 +111.6 882 749 + 17.8
-----------------------------------------------------------------------------------------------------------------------------
1st Half
Chemicals 2,725 1,994 +36.7 359 336 + 6.8 364 363 + 0.3
Plastics & Fibers 5,677 3,878 +46.4 482 233 +106.9 446 243 + 83.5
Colorants & Finishing Products 3,509 3,143 +11.6 307 275 + 11.6 304 351 - 13.4
Health & Nutrition 3,235 2,933 +10.3 304 5 . 290 326 - 11.0
Oil & Gas 1,614 1,250 +29.1 487 171 +184.8 487 169 +188.2
Other 679 810 -16.2 -81 - 28 . -86 -47 - 83.0
-----------------------------------------------------------------------------------------------------------------------------
17,439 14,008 +24.5 1,858 992 + 87.3 1,805 1,405 + 28.5
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Health & Nutrition
The Pharmaceuticals division increased sales in the second quarter by Euro 68
million or 11.8% over the previous year. Sales rose particularly in Asia, partly
due to currency effects. Earnings in the second quarter remained below those of
the same quarter last year due to lower earning levels in the United States. As
result of the good earnings in the first quarter, first-half earnings improved
by 36.6%. The restructuring program is progressing according to plan.
In the Fine Chemicals division, volumes improved during the second quarter.
Prices, however, remain unsatisfactory, and as a result sales only increased by
6.1% and earnings did not match those of the previous year.
The Crop Protection division increased sales by Euro 91 million or 14.2% in the
second quarter in comparison with the same quarter last year. However, the
increase in sales is largely attributable to foreign currency effects,
especially from the North American business. Despite pressure on margins,
earnings once again reached a good level.
--------------------------------------------------------------------------------
Sales Income from Income from
operations operations
before
special items
Million Change Change Change
Euro in % in % in %
--------------------------------------------------------------------------------
1st Quarter 2000
Pharmaceuticals 614 +13.1 40 +122.2 40 +110.5
Fine Chemicals 354 +12.7 8 - 42.9 10 - 50.0
Crop Protection 542 + 2.3 103 - 7.2 103 - 11.2
--------------------------------------------------------------------------------
2nd Quarter 2000
Pharmaceuticals 642 +11.8 27 . 16 - 27.3
Fine Chemicals 349 + 6.1 6 . 7 - 46.2
Crop Protection 734 +14.2 120 - 14.3 114 - 16.2
--------------------------------------------------------------------------------
1st Half 2000
Pharmaceuticals 1,256 +12.4 67 . 56 + 36.6
Fine Chemicals 703 + 9.3 14 . 17 - 48.5
Crop Protection 1,276 + 8.8 223 - 11.2 217 - 13.9
--------------------------------------------------------------------------------
Oil & Gas
The significant increase in the price of crude oil and the higher dollar
resulted in a doubling of our sales from oil and gas production. Natural gas
trading also benefited from the increased reference prices. This more than
compensated for the loss of sales from the oil marketing and refinery business,
which was sold at the end of 1999. The positive trend of sales is also reflected
in income from operations, which doubled in the second quarter. However, the
non-deductible oil production taxes included in the tax charge also increased
and amounted to Euro 89 million in the second quarter.
<TABLE>
<CAPTION>
Regions
-----------------------------------------------------------------------------------------------------------
Sales based on Sales based on Income from
location of customer location of company operations*
-----------------------------------------------------------------------------------------------------------
Change Change Change
Million Euro 2000 1999 in % 2000 1999 in % 2000 1999 in %
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2nd Quarter
Europe 4,984 4,039 +23.4 5,486 4,571 +20.0 595 243 +144.9
o thereof Germany 1,874 1,601 +17.1 3,546 3,016 +17.6 377 83 +354.2
North America (NAFTA) 2,280 1,830 +24.6 2,298 1,837 +25.1 195 110 + 77.3
South America 524 434 +20.7 432 344 +25.6 48 46 + 4.3
Asia, Pacific Area, Africa 1,181 932 +26.7 753 483 +55.9 53 22 +140.9
-----------------------------------------------------------------------------------------------------------
8,969 7,235 +24.0 8,969 7,235 +24.0 891 421 +111.6
-----------------------------------------------------------------------------------------------------------
1st Half
Europe 10,019 8,104 +23.6 11,051 9,066 +21.9 1,317 659 + 99.8
o thereof Germany 3,923 3,251 +20.7 7,083 5,957 +18.9 870 309 +181.6
North America (NAFTA) 4,146 3,403 +21.8 4,167 3,405 +22.4 320 252 + 27.0
South America 976 793 +23.1 795 629 +26.4 98 36 +172.2
Asia, Pacific Area, Africa 2,298 1,708 +34.5 1,426 908 +57.0 123 45 +173.3
-----------------------------------------------------------------------------------------------------------
17,439 14,008 +24.5 17,439 14,008 +24.5 1,858 992 + 87.3
-----------------------------------------------------------------------------------------------------------
</TABLE>
*Based on location of company
<PAGE>
Regions
All regions contributed to the increase in sales and earnings in the second
quarter. The much higher contribution to earnings made by the German group
companies is attributable to the charges contained in the previous year's
earnings related to antitrust proceedings in the vitamins business. In North
America (NAFTA), the sales increase in dollar terms was about 10% in the second
quarter and about 7% in the first half. Second quarter earnings in North America
increased by 77.3%. Our Asian companies, especially those in Korea and China,
raised their contribution to Group earnings in the second quarter by 141%.
Finance
In the first half, cash provided by operating activities was reduced in
comparison with the same period last year as a result of higher accounts
receivable and inventory, as well as payments of fines related to violations of
antitrust laws in the vitamins business. The total cash outflow for investments
was Euro 5.7 billion. Cash used for acquisitions related primarily to the
acquisition of American Cyanamid's crop protection business and Chemdal's
superabsorbents business. The payment made on June 30 for American Cyanamid,
acquired as of July 1, and the corresponding financing are shown in the balance
sheet as "Receivables" and "Financial Indebtedness" respectively. By the end of
June this year we have spent Euro 323 million on the share buy-back, and
acquired a total of 6.8 million shares.
Euro conversion
The conversion of the European group companies from national currencies to Euro
was successfully accomplished over the Easter weekend of 2000. Accounts and
reporting are now euro-based, retroactive to January 1, 2000.
Statements of Cash Flows, 1st half
--------------------------------------------------------------------------------
Million Euro 2000 1999
--------------------------------------------------------------------------------
Net income 912 429
Depreciation of fixed assets 1,320 1,203
Changes in net current assets -1,116 -20
Miscellaneous items -14 231
--------------------------------------------------------------------------------
Cash provided by operating activities 1,102 1,843
--------------------------------------------------------------------------------
Additions to tangible and intangible
fixed assets -1,298 -1,387
Acquisitions and divestitures, net -4,794 - 200
Financial investments and other items 351 285
--------------------------------------------------------------------------------
Cash used in investing activities -5,741 -1,302
--------------------------------------------------------------------------------
Proceeds from capital increases - 298 - 255
Changes in financial indebtedness 5,386 841
Dividends paid - 725 - 697
--------------------------------------------------------------------------------
Cash used in financing activities 4,363 - 111
--------------------------------------------------------------------------------
Changes in cash assets affecting liquidity - 276 430
Initial cash assets and other changes 1,019 799
--------------------------------------------------------------------------------
Cash and cash equivalents 743 1,229
--------------------------------------------------------------------------------
Forward-looking statements
This report contains forward-looking statements under the Private Securities
Litigation Reform Act of 7995. 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 report.
Future reports
3rd quarter 2000 November 9, 2000
Year 2000 March 14, 2001
1st quarter 2001/
Annual meeting April 26, 2001
1st half 2001 August 7, 2001
<PAGE>
Interim Financial Statement of the BASF Group (abridged)
<TABLE>
<CAPTION>
Consolidated Statements of Income Million Euro
--------------------------------------------------------------------------------------------------------------
2nd Quarter Change 1st Half Change
2000 1999 in % 2000 1999 in %
--------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Sales* 8,969 7,235 + 24.0 17,439 14,008 + 24.5
Cost of sales 5,731 4,426 + 29.5 11,141 8,545 + 30.4
--------------------------------------------------------------------------------------------------------------
Gross profit on sales 3,238 2,809 + 15.3 6,298 5,463 + 15.3
Selling expenses 1,424 1,292 + 10.2 2,767 2,493 + 11.0
General and administrative expenses 186 161 + 15.5 348 350 - 0.6
Research and development expenses 357 339 + 5.3 701 686 + 2.2
Other operating income 158 140 + 12.9 415 340 + 22.1
Other operating expenses 538 736 - 26.9 1,039 1,282 - 19.0
--------------------------------------------------------------------------------------------------------------
Income from operations 891 421 +111.6 1,858 992 + 87.3
Financial result 63 - 41 . 28 -60 .
--------------------------------------------------------------------------------------------------------------
Income before taxes and minority interests 954 380 +151.1 1,886 932 +102.4
Income taxes 498 273 + 82.4 956 502 + 90.4
Minority interests 8 1 +700.0 18 1 .
--------------------------------------------------------------------------------------------------------------
Net income 448 106 +322.6 912 429 +112.6
Earnings per share in Euro 0.73 0.17 +329.4 1.48 0.69 +114.5
--------------------------------------------------------------------------------------------------------------
</TABLE>
* net of petroleum and natural gas taxes
<TABLE>
<CAPTION>
Consolidated Balance Sheets Million Euro
--------------------------------------------------------------------------------------------------------------
Assets June 30 Change Dec. 31 Change
2000 1999 in % 1999 in %
--------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Fixed assets 17,123 15,838 + 8.1 16,070 + 6.6
Inventories 4,372 3,844 + 13.7 4,028 + 8.5
Receivables 12,434 6,885 + 80.6 7,178 + 73.2
Deferred taxes 1,238 1,104 + 12.1 1,225 + 1.1
Cash and cash equivalents 1,127 1,725 - 34.7 1,508 - 25.3
--------------------------------------------------------------------------------------------------------------
Current assets 19,171 13,558 + 41.4 13,939 + 37.5
--------------------------------------------------------------------------------------------------------------
Total assets 36,294 29,396 + 23.5 30,009 + 20.9
--------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Stockholder's equity and liabilities June 30 Change Dec. 31 Change
2000 1999 in % 1999 in %
--------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Subscribed capital and capital surplus 4,265 4,165 + 2.4 4,265 + 0.0
Retained earnings and other equity 9,556 8,738 + 9.4 9,551 + 0.1
Minority interests 492 349 + 41.0 329 + 49.5
--------------------------------------------------------------------------------------------------------------
Stockholder's equity 14,313 13,252 + 8.0 14,145 + 1.2
Provisions 8,976 8,458 + 6.1 8,638 + 3.9
Financial indebtedness 6,750 2,334 +189.2 1,294 +421.6
Miscellaneous liabilities 6,255 5,352 + 16.9 5,932 + 5.4
--------------------------------------------------------------------------------------------------------------
Liabilities 21,981 16,144 + 36.2 15,864 + 38.6
--------------------------------------------------------------------------------------------------------------
Equity and liabilities 36,294 29,396 + 23.5 30,009 + 20.9
--------------------------------------------------------------------------------------------------------------
The interim financial statement has not been audited.
Corporate Media Relations: Investor Relations: www.basf.com
Tel. +49-621-60-99938 Tel. +49-621-60-48230 BASF Aktiengesellschaft
Fax +49-621-60-20129 Fax +49-621-60-22500 67056 Ludwigshafen
E-Mail: [email protected] E-Mail: [email protected] Germany
</TABLE>
<PAGE>
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: August 8, 2000 By: /s/ Dr. Felix Gress
Name: Dr. Felix Gress
Title: Director Communications
BASF Group
By: /s/ Kurt Leidner
Name: Kurt Leidner
Title: Director Communications
Ludwigshafen Site
