November 9, 2011
BASF to increase crop protection sales
BASF SE targets to raise its crop protection unit's sales to EUR6 billion (US$8.3 billion) by 2020 from EUR4 billion (US$5.5 billion) in 2010 as it foresees positive growth in Asia and Latin America, it said on Tuesday (Nov 8).
According to Wall Street Journal, in Asia alone, the German company aims to increase sales at its crop protection business to EUR1 billion (US$1.38 billion) by 2020 from EUR400 million (US$553.5 million) in 2010.
For 2011, the unit's sales are expected to outpace the market, while earnings before interest and taxes will likely beat last year's level of EUR749 million (US$1036.4 million).
The debt crisis and economic slowdown have not hurt order intake so far, BASF said.
While prices of agricultural raw materials are still at a high level, BASF said it expects both prices and currencies to remain volatile.
It also said it hopes to offset the negative effects of the weak dollar through good volume growth and a good agricultural season in South America.
The crop protection business, which generated EUR4 billion (US$5.5 billion) in sales last year or 6.3% of group revenue is BASF's smallest division.
Agricultural raw material prices and liquidity for farmers will be the main factors determining how 2011 turns out, the company said. Both have been high so far.