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BASF sees profit growth in 2011

BASF, the world's largest chemical maker, raised the prospect of earnings growth in 2011, two weeks after it said this year's operating profit would increase significantly.

“Assuming that the global economy continues to recover once national stimulus programs have expired, we expect BASF's sales, income from operations and the premium on our cost of capital to grow further in 2011,” the German company said in its 2009 annual report published on Thursday.

BASF said on February 25 that earnings before interest and tax were set to improve significantly this year compared with crisis-fraught 2009, when its operating margin hit an eight-year low, forcing it to cut its annual dividend for the first time in 16 years.

It added at the time that a shaky recovery was lifting chemicals and plastics volumes. (Reuters)