Despite Declining Demand, BASF Increases Sales and Earnings in the Third Quarter of 2014 - Seite 3

For 2015, BASF now expects sales and EBITDA to be in line with market expectations. For EBITDA, they are between EUR 10 billion and EUR 12 billion. As usual, the company will provide an outlook for 2015 at its Annual Press Conference on February 27, 2015, and give an update on its long-term targets.

Bock: "With regard to our strategic direction, we are on track. Even in this somewhat more difficult environment, we will continue to grow profitably."

The operational excellence program STEP is ahead of schedule. "By the end of 2015, we now aim to achieve improvements of EUR 1.3 billion, EUR 300 million more than initially planned," said Bock.

New set-up of global research platforms

Innovations are an essential pillar in the "We create chemistry" strategy. In 2020, BASF aims to generate EUR 30 billion of sales with products that will have been on the market for less than 10 years. The basis for these innovations is effective and efficient research and development. To achieve this ambitious goal, BASF is further developing the research organization and bundling its competencies in three global platforms:

• Advanced Materials & Systems Research with headquarters at BASF's Innovation Campus Asia Pacific in Shanghai by 2016
• Bioscience Research headquartered in Research Triangle Park, North Carolina, starting January 2015
• Process Research & Chemical Engineering headquartered in Ludwigshafen

The stronger presence outside of Europe will create new opportunities for building up and expanding customer relationships and scientific cooperations. All three research platforms will be established globally to support the R&D needs of BASF's customers. This will strengthen the R&D Verbund and also increase BASF's attractiveness as a partner and an employer in the regions.

Business development in the segments in the third quarter

Sales in the Chemicals segment matched the level of the previous third quarter. The market environment in Asia was difficult; in Europe sales volumes declined. There was sharp volumes growth in the Petrochemicals division in North America. With EUR 616 million, earnings in the segment exceeded the prior third-quarter level by EUR 89 million, mainly due to higher margins in the Petrochemicals division.