Global chemicals company BASF, which has a major wood coatings division, increased its operating profits by 25% during 2002, despite difficult trading conditions.
The German-based company’s full-year operating profits were e2.88bn on sales of e32.2bn. But an 8% growth in volumes could not fully offset negative price and currency effects.
Sales in its performance products division, which includes wood coatings for the furniture and joinery industry, were slightly down but operating profit was still up by e250m to e653m. An improved cost structure was the main reason for the big increase.
Restructuring initiatives launched in 2001 made a positive impact on the results. These included cost-cutting, streamlining organisation and sharpening customer focus.
