BASF, the world's biggest chemicals company, said Thursday that earnings rose strongly in the first three months of the current year as strong demand for its products and cost-cutting measures helped offset the effects of high raw materials prices.
BASF said in a statement it booked net profit of 861 million euros (1.1 billion dollars) in the period from January to March, an increase of 66 percent on the year.
Operating profit, as measured by earnings before interest and tax (EBIT), was up by 33 percent at 1.6 billion euros on an 11.4-percent increase in sales to 10.083 billion euros.
"Demand for our products remains strong," said chairman Juergen Hambrecht. "We are attempting to counter very high raw materials costs, which are continuing to rise in some cases, with further price increases. We are also rigorously implementing our restructuring measures to ensure our long-term competitiveness."
Given the strong first quarter, Hambrecht said he was "optimistic" with regard to the outlook for the rest of the year.
"We expect higher sales and to follow on from the high level of EBIT in 2004, if possible exceeding it," he said.