Performance in this segment was mainly driven by higher sales in the Agricultural Products division and successful restructuring measures in the Fine Chemicals division.

Oil & Gas

Revenues for oil and gas dropped 0.4% to 3 billion euro year-on-year and fell 1.6% from a year ago to 10.5 billion euro.

Europe Sales

Although income from operations fell 1.3% dragged by declining sales in the Oil and Gas division, sales in Europe rose 9% led by higher sales volumes and prices in the Intermediates and Inorganics and strong growth in the Catalysts and Construction Chemicals division.

North America

In North America income from operation plummeted 12% lower than in 2006 to 762 million euro due to scheduled plant turnarounds in the Petrochemicals division and the shutdown of the TDI plant in Geismar, Louisiana.

Sales in North America rose 5% in euro terms as Chemicals and Performance Products posted significantly higher sales.

Asia Pacific sales

The new Catalyst division made a significant performance to the Chemicals segment, with sales increasing 18% in euro terms. There were above average growth in the Asian markets and income from operation were more than four times higher than the previous year at 828 million euro.

South America, Africa and the Middle East

Sales in these regions spiked 24% in euro terms. Income from operations also grew 45% to 311 million euro driven by both higher volumes and prices for agricultural products in Brazil. The successful integration of the catalysts business in South Africa also positively impacted on earnings. In addition, sales of architectural coatings and to the automotive industry also increased.

Outlook

Chairman of the Board of Executive Directors of BASF SE Dr. Jürgen Hambrecht observed: “The first weeks of 2008 have run on smoothly from the past year for BASF. The level of orders remains strong and the capacity utilization rates of our plants are high. We therefore expect that BASF’s business will also develop positively in 2008.”