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BASF report full year and 4Q 2010: functional solutions business review 4Q 2010
FOCUS integration resulted in special charges of €77 M. At €100 M, special charges related to restructuring measures were also considerably lower than in 2009 (€366 M). The divestiture of various businesses resulted in special income of €31 M (compared with a charge of €1 M in 2009). Other items resulted in special charges of €146 M. These include valuation adjustments of €96 M on oil and gas concessions in the British and Norwegian N Sea. BASF Report Full Year and 4Q 2010, 24 Feb 2011, (BASF SE, D-67056 Ludwigshafen, Germany, tel: +49 (0) 621 600, website: http://www.basf.com)
BASF report full year and 4Q 2010: functional solutions business review 4Q 2010 Thanks to the rapid global recovery of the automotive industry in 2010, sales volumes in the segment were far higher than in the same quarter of 2009. Demand from the construction industry also increased slightly, primarily owing to the robust building activity in Asia. Higher precious metal prices and positive currency effects also boosted sales (volumes 15%, prices 10%, portfolio 1%, currencies 9%). Incomes from operations before special items were lower year-onyear as a result of one-time operating costs, for example, for personnel and valuation adjustments on inventories. Catalysts: Sales in the Catalysts division increased substantially, due mainly to higher sales volumes of mobile emissions and chemical catalysts. In addition, sales from precious metals trading rose by €281 M due to higher prices and volumes to €654 M. Earnings, however, decreased in comparison with 4Q 2009. Stronger demand from the automotive and chemical industries could not compensate for weaker earnings in precious metals trading and higher onetime cost, such as for personnel and maintenance. Construction MAY 2011
ON
POWDER
Chemicals: BASF’s business in Europe and N America experienced a seasonal slowdown. Nevertheless, we were able to increase sales year-onyear in all regions, especially in Asia and other emerging markets. Positive currency effects also boosted sales. Earnings did not match the level of 4Q 2009, mainly as a result of personnelrelated provisions. BASF’s measures to improve efficiency resulted in special charges related to the restructuring of sites. Coatings: Sales volumes and sales in the Coatings division increased year-on-year in all business areas. The positive trend seen in previous quarters continued for automotive OEM coatings, automotive refinish coatings and architectural coatings. We were not yet able to fully pass on higher raw materials costs. Earnings therefore declined despite higher volumes. BASF Report Full Year and 4Q 2010, 24 Feb 2011, (BASF SE, D-67056 Ludwigshafen, Germany, tel: +49 (0) 621 600, website: http://www.basf.com)
Long-chain dicarboxylic acids market is not favourable The use of long-chain dicarboxylic acids by foreign companies to produce nylon 11 and nylon 12 is noted. Since there are no Chinese producers of nylon 11 and nylon 12, the country has to import up to 20,000 tonne/y, at prices of about RMB Yuan 100,000/tonne for nylon 11 and up to RMB Yuan 120,000/tonne for nylon 12. As a result of research carried out at Zhengzhou University, Shandong Hilead Biotechnology Co Ltd is building units for nylon 1212 (3000 tonne/y) and semi-aromatic nylon 12T (2000 tonne/y), both of which have properties and applications similar to those of nylon 11 and nylon 12. Chinese demand for long-chain dicarboxylic acids could increase markedly if these domestically produced nylon engineering plastics prove to be good
C O AT I N G S substitutes for nylon 11 and nylon 12. China also imports about 2000 tonne/y of high-grade, polyamide hot-melt adhesives with an import value of about RMB Yuan 200 M/y. Development prospects for Chinese producers of hot-melt adhesives are not considered to be favourable. Chinese production of musk-T, a macrocyclic musk compound used in synthetic perfumes, is expected to have totalled more than 2000 tonnes in 2010 using long-chain dicarboxylic acids (mainly DC13) produced in the country. Production of speciality polyamide powder coatings (less than 200 tonne/y) accounts for less than 0.03% of Chinese powder coatings production. However, Chinese demand for the polyamide-based powder coatings is about 1500 tonne/y. Several production units for long-chain dicarboxylic acids have been commissioned recently in China. Because demand in downstream sectors remains limited, much of the new production is exported. The main end-use for long-chain dicarboxylic acids is in the production of nylon engineering plastics, ahead of synthetic perfumes. Use of the chemicals in the production of hot-melt adhesives, powder coatings, and lubricants remains at a very low level compared with total consumption, which totalled about 13,000 tonnes in 2009. Since some of the downstream products were for the export market, actual demand for long-chain dicarboxylic acids in China can be considered to be much lower. Chinese producers have been adversely impacted by lower prices and increased competition. The need for lower production costs, enhance product quality, and development of downstream sectors is noted. Future development of the Chinese longchain dicarboxylic acids sector will require increased levels of communication and coordination. China Chemical Reporter, 21 Feb 2011, 22 (4), 23 (Website: http://www.ccr.com.cn)
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BASF report full year and 4Q 2010: functional solutions business review 4Q 2010 Thanks to the rapid global recovery of the automotive industry in 2010, sales volumes in the segment were far higher than in the same quarter of 2009. Demand from the construction industry also increased slightly, primarily owing to the robust building activity in Asia. Higher precious metal prices and positive currency effects also boosted sales (volumes 15%, prices 10%, portfolio 1%, currencies 9%). Incomes from operations before special items were lower year-onyear as a result of one-time operating costs, for example, for personnel and valuation adjustments on inventories. Catalysts: Sales in the Catalysts division increased substantially, due mainly to higher sales volumes of mobile emissions and chemical catalysts. In addition, sales from precious metals trading rose by €281 M due to higher prices and volumes to €654 M. Earnings, however, decreased in comparison with 4Q 2009. Stronger demand from the automotive and chemical industries could not compensate for weaker earnings in precious metals trading and higher onetime cost, such as for personnel and maintenance. Construction MAY 2011
ON
POWDER
Chemicals: BASF’s business in Europe and N America experienced a seasonal slowdown. Nevertheless, we were able to increase sales year-onyear in all regions, especially in Asia and other emerging markets. Positive currency effects also boosted sales. Earnings did not match the level of 4Q 2009, mainly as a result of personnelrelated provisions. BASF’s measures to improve efficiency resulted in special charges related to the restructuring of sites. Coatings: Sales volumes and sales in the Coatings division increased year-on-year in all business areas. The positive trend seen in previous quarters continued for automotive OEM coatings, automotive refinish coatings and architectural coatings. We were not yet able to fully pass on higher raw materials costs. Earnings therefore declined despite higher volumes. BASF Report Full Year and 4Q 2010, 24 Feb 2011, (BASF SE, D-67056 Ludwigshafen, Germany, tel: +49 (0) 621 600, website: http://www.basf.com)
Long-chain dicarboxylic acids market is not favourable The use of long-chain dicarboxylic acids by foreign companies to produce nylon 11 and nylon 12 is noted. Since there are no Chinese producers of nylon 11 and nylon 12, the country has to import up to 20,000 tonne/y, at prices of about RMB Yuan 100,000/tonne for nylon 11 and up to RMB Yuan 120,000/tonne for nylon 12. As a result of research carried out at Zhengzhou University, Shandong Hilead Biotechnology Co Ltd is building units for nylon 1212 (3000 tonne/y) and semi-aromatic nylon 12T (2000 tonne/y), both of which have properties and applications similar to those of nylon 11 and nylon 12. Chinese demand for long-chain dicarboxylic acids could increase markedly if these domestically produced nylon engineering plastics prove to be good
C O AT I N G S substitutes for nylon 11 and nylon 12. China also imports about 2000 tonne/y of high-grade, polyamide hot-melt adhesives with an import value of about RMB Yuan 200 M/y. Development prospects for Chinese producers of hot-melt adhesives are not considered to be favourable. Chinese production of musk-T, a macrocyclic musk compound used in synthetic perfumes, is expected to have totalled more than 2000 tonnes in 2010 using long-chain dicarboxylic acids (mainly DC13) produced in the country. Production of speciality polyamide powder coatings (less than 200 tonne/y) accounts for less than 0.03% of Chinese powder coatings production. However, Chinese demand for the polyamide-based powder coatings is about 1500 tonne/y. Several production units for long-chain dicarboxylic acids have been commissioned recently in China. Because demand in downstream sectors remains limited, much of the new production is exported. The main end-use for long-chain dicarboxylic acids is in the production of nylon engineering plastics, ahead of synthetic perfumes. Use of the chemicals in the production of hot-melt adhesives, powder coatings, and lubricants remains at a very low level compared with total consumption, which totalled about 13,000 tonnes in 2009. Since some of the downstream products were for the export market, actual demand for long-chain dicarboxylic acids in China can be considered to be much lower. Chinese producers have been adversely impacted by lower prices and increased competition. The need for lower production costs, enhance product quality, and development of downstream sectors is noted. Future development of the Chinese longchain dicarboxylic acids sector will require increased levels of communication and coordination. China Chemical Reporter, 21 Feb 2011, 22 (4), 23 (Website: http://www.ccr.com.cn)
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