10:00AM, New York - Germany’s chemical and plastics manufacturing company BASF Group reported full-year net income rose 26.4% to 4 billion euros from 3.2 billion euro a year ago as the new Catalyst division made a significant contribution to profit.

Fourth Quarter Earnings Review

BASF reported that sales in the fourth quarter ended December 31st rose 1.6% from 14.4 billion euro in the quarter ago period to 14.7 billion euro.

For the quarter, net income grew 8.3% from 732 million euro in 2006 to 793 million euro in 2007. Earnings per share increased 13% to 1.65 euro per share from 1.46 euro in the year-ago quarter.

Earnings before income and taxes slid 3.4% to 1.61 billion euro from 1.66 billion euro in the comparative period a year ago on lower capacity utilisation that was triggered by the integration of acquired units.

Annual Earnings Review

BASF Group reported that full-year sales in the year ended December 31st rose 10.2% to 57.9 billion euro from 52.6 billion euro a year earlier as sales were boosted by the new Catalyst business.

For the year, net income gained 26.4% to 4 billion euro from 3.2 billion euro in the year ago period. Earnings per share in the period also surged 30.6% to 8.32 euro per share from 6.37 euro per share.

Full-year EBIT advanced 8.4% from 6.7 billion euro in 2006 to 7.3 billion euro in 2007.

Revenues

Chemicals Segment

Fourth-quarter sales in the Chemicals division slumped 0.9% to 3.41 billion euro from 3.44 billion euro in the comparable period a year ago.

Conversely, sales in the year increased 22.4% from a year earlier to 14.1 billion euro. Growth in the division was mainly driven by the Catalyst unit that contributed its first full year sales for the first time.

Plastics Segment

In the plastic unit, sales grew 1.4% to 3.3 billion euros in the fourth quarter and 5.6% to 13.4 billion euros for the year as high volumes and price increases helped increase revenues.

Performance Products

Total sales in the fourth quarter for performance products increased 1.4% to 2.87 billion euro from 2.83 billion euro in the comparable period a year.

For the year, revenues jumped 15.4% to 11.6 billion euro from 10.2 billion euro in 2006 due to the contribution of the acquired businesses.

Improved growth in Construction Chemicals and Performance Chemicals segment managed to par the depressed performance in the Coatings and Functional Polymers divisions.

Agricultural Products & Nutrition