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Billion Dollar Club 2012: BASF takes top ranking for seventh straight year

2:38 PM MDT | June 16, 2014 | —Lindsay Frost

BASF has maintained its top spot in CW’s Billion Dollar Club 2012—our annual ranking of companies by chemical revenues on a dollar basis—with China’s Sinopec taking the second slot. US companies ExxonMobil and Dow Chemical take the three and four spots, respectively, and Sabic rounds out the top five. Revenues were generally higher in 2012, with the median rise at 4.5%. However, the continuing recession in Europe dampened results for those players, and the top five have all posted decreases in chemical sales. Japanese chemical makers have posted declines a dollar basis, since the yen weakened significantly. The yen fell 15% against the dollar in the 12-month period ended 31 March 2013, the end of the fiscal year for most Japanese companies.

US companies, with 34 out of 110 entries, are well represented. US chemical makers have recorded a median sales rise of 4.6%. Asian and Mideast companies make up 31 out of 110 companies, although the Chinese economy, characterized by weak market demand, slowed down in the first half of the year. However, GDP growth came in at 7.8% for the year, Sinopec says in its annual report 2012. Europe has 25 companies, with the majority from Germany.

Bock: BASF, with sales over $75 billion, is on top.
Chengyu: China’s Sinopec is now second.
Tillerson: ExxonMobil takes #3 spot in chemicals.
Liveris: Dow hits #4 at over $56 billion in sales.

“After three years of recovery from the great recession, the global economy stumbled in 2012, with the euro area in recession again, a slowdown in China became particularly pronounced, and confidence erosion and other negative factors spread,” ACC says in its Year End 2012 Situation and Outlook. “Global manufacturing entered a soft period this summer, with particular weakness in Europe and East Asia.”

By sector, BASF says transportation grew the most, with the strongest growth in the United States and Japan. Consumer goods posted the biggest decline for the company. Dow says that one of its weakest profit contributors was its Dow Corning joint venture. Conditions for polysilicon continued to worsen as trade disputes over polysilicon commenced. Performance plastics had Dow’s highest sales. ExxonMobil showed strength from North American ethane, and Sabic says olefins had strong production in 2012.

“Several major end-use markets for chemistry have recovered in the United States, especially those tied to export markets and business investment,” ACC says. “But many markets, however, still remain below their 2007 peaks,” ACC says.

This year is BASF’s seventh in the top spot, which it took from Dow. BASF says that, in 2012, its “agricultural solutions segments achieved new records, while development in our [other] chemicals business were weaker than we had anticipated at the beginning of the year.” For the chemical industry overall, 2012 was a mixed year, BASF says. Growth in worldwide chemical production slowed, and the emerging markets of Asia showed markedly weak growth in the first half. “The 2012 business year was characterized by unusually stark economic fluctuations. After showing positive development at the beginning of the year, leading economic indicators turned bleak as the year progressed,” BASF says in its annual report.

Dow, number four, notes growth in the United States and Canada as well—despite losses due to currency translation, naphtha-based margin contraction, and weakness in Europe and Asia. “In 2012, the industry grappled with thin-to-negative margins for naphtha-based ethylene producers in Europe and in Asia,” Andrew Liveris, CEO and chairman of Dow, said in its fourth-quarter and full-year earnings call, on 31 January. “The dichotomy, of course, is the Americas, which have shown exceptional margin strength, as wet shale gas dynamics are fundamentally changing the game for integrated North American–based producers, like Dow. This is clearly evidenced by operating rates in the United States and Canada being in the 90s, while Asia and Europe have been in the 70s. In addition, we reached significant milestones with critical, enterprise-growth projects, such as our investments on the US Gulf Coast and our Sadara joint venture in the Middle East. These projects are game changers to Dow’s bottom line,” Liveris adds.

The ascent of Sinopec, rising to the number-2 spot in chemicals after entering the list in 2001 in the 30th position, is remarkable. However, the company notes in its annual report that demand for chemical products was sluggish globally, and, “combined with the impact of low-cost chemical feedstock from the Middle East and North America, the price of chemical products dropped sharply. Domestic chemical products market conditions generally followed that of the international market.” Sinopec chemical revenues declined 2% in 2012, while segment operating income fell 95%. However, the consumptions of synthetic resin, synthetic fiber, and synthetic rubber increased, the company says. Domestic consumption of ethylene grew as well. Chemicals account for about 9% of Sinopec’s sales.

ExxonMobil says the highest chemical demand in 2012 was in Asia, and the company expects that trend to continue growing, with Asia’s share of global chemical demand to reach 50% over the next 10 years. This situation is spurring new capacity investments across the globe, particularly in North America, tied to growing supplies of ethane, the company says of chemical markets in its 2012 annual report. “Most chemical demand growth is in Asia, driven by manufacturing of consumer products for both worldwide export and to serve the growing Asian middle class,” ExxonMobil says. “These consumers are expected to purchase more packaged goods, appliances, cars, tires, and clothing, many of which are manufactured from the chemicals we produce. Asia/Pacific has accounted for more than two-thirds of global demand growth since 2000, and we expect this trend to continue.”

R&D reached over $5 billion, with BASF and DuPont each spending over $2 billion. Dow was not far behind, spending $1.7 billion in 2012.

“Research and development expense increased 15% to support continued growth in breeding, biotechnology, and crop chemistry,” DuPont says in its annual report. “The company is expanding its offerings addressing safety, environment, energy, and climate challenges in the global marketplace by developing and commercializing renewable, biobased materials; advanced biofuels; energy-efficient technologies; enhanced safety and protection products; and alternative energy products and technologies. The goals are tied directly to business growth, including increasing food production, increasing renewable sources for energy and raw materials, and providing greater safety and protection for people and the environment.”

BASF spent over $5 billion in capital expenditures—including the integrated toluene diisocyanate facility at Ludwigshafen; a new methylene di-para-phenylene isocyanate plant at Chongqing, China; and an acrylic acid and superabsorbent production complex at Camaçari, Brazil.

ACC says overall capital spending levels have remained subdued since the end of the recession. “With narrowing margins, austere market conditions, lower operating rates, and a high level of uncertainty, a number of capital investment projects were extended or delayed. Furthermore, capital spending budgets were slashed to conserve cash flow, and, as a result, US capital investment in chemistry fell [in 2012].”

Despite the slow global recovery, the chemical industry continues to make strong profits. Growth has already accelerated in several markets during the first half of 2013, and the US will continue to shine on top while Europe struggles to maintain margins. Markets in Asia, which is now a primary driver of global markets, will report strong demand.

“The global recovery stalled in 2012, with Europe slipping back into recession and manufacturing in China slowing sharply. In the US, uncertainty about the election, fiscal cliff, and the overall pace of recovery curbed growth. More than three years since the official end of the recession, the majority of manufacturing industries remain below their prerecession peak. But, while growth has slowed in the developed countries, emerging market economies continued to expand,” ACC says.

Most companies on the list are optimistic about 2013. ACC says the softening of the manufacturing recovery has dampened domestic chemical demand, and the weakness in Europe and elsewhere has hurt export sales, but exports remain a bright spot for the industry, and several end-use markets are continuing to show strength—including in vehicles and housing.

“Following a decade of high and volatile natural gas prices that destroyed industrial demand and lead to the closure of many gas-intensive manufacturers, shale gas offers a new era of American competitiveness that will lead to greater investment, industry growth, and employment,” says Kevin Swift, chief economist at ACC.

Footnotes

All figures in millions of US dollars. Ranking includes companies with chemical revenues of more than $3 billion for fiscal years ending 1 July 2012 through 30 June 2013.

a Excludes oil and gas; b includes intersegment sales; c excludes refining; d excludes pharma and/or other nonchemical businesses; q fiscal year ended 31 March 2013; qq fiscal year ended 30 June 2013; qqq fiscal year ended 30 September 2012; qo fiscal year ended 31 October 2012; qm fiscal year ended 31 May 2013; qa fiscal year ended 31 August 2012; NA not available; NC no change.

Exchange rates used for dollar conversion based on rates at end of each company’s respective fiscal year. Exchange rates include $1=.49 Brazilian reais, 0.033 Thai baht, 0.0001 Indonesian rupiah, 6.34 renminbi, 0.1793 Norwegian kroner, 0.076 Mexican pesos, 1.09 Swiss francs, and 0.26 Saudi riyals as of 31 December 2012. $1=50.87 Indian rupees, ¥0.01, and 3.06 Malaysian ringgit as of 31 March 2013.

Several companies with substantial chemical operations do not publicly report chemical revenues. These companies include ChemChina, Koch Industries, and Petrochina. Chemical sales for Sabic and integrated oil firms include intersegment sales. Data sources include company reports, regulatory filings, and Thomson Reuters (New York).

2012 ranking Year ago ranking Company (headquarters) 2012 chemical sales in millions $ Change from last year 2012 total sales in millions $ Chemical revenues as percent of overall sales 2012 chemical operating income in millions $ Change from last year 2012 chemical capital spending in millions $ 2012 chemical R&D in millions $ 2012 chemical employees
1 1 BASF (Germany) a $75,552 5% $103,922 75% $14,095 (0)% $5,268 $2,309 NA
2 5 Sinopec (China) b 66,079 (2) 446,882 6 189 (95) 3,785 NA NA
3 2 ExxonMobil (US) b 60,885 (6) 482,295 33 4,885 (10) 1,418 NA NA
4 4 Dow Chemical (US) 56,786 (5) 56,786 100 1,665 (54) 2,614 1,708 54,353
5 3 Sabic (Saudi Arabia) d 50,390 (19) 50,451 83 10,916 6 2,871 NA 40,000
6 6 Royal Dutch Shell (Netherlands; UK) b 45,757 (3) 467,153 10 NA NA 875 NA NA
7 8 LyondellBasell (The Netherlands) c 37,671 (7) 45,352 67 4,329 21 1,275 NA NA
8 7 DuPont (US) 35,310 (7) 35,310 100 3,115 (18) 1,793 2,067 70,000
9 10 Ineos (Switzerland) 30,005 9 30,005 100 785 (57) NA NA 12,910
10 9 Mitsubishi Chemical (Japan) d; q 28,990 12 37,224 67 1 (59) NA 1 30,186
11 11 Total (France) b 26,050 (3) 264,634 11 NA NA NA NA NA
12 13 Formosa Plastics Group (Taiwan) 25,236 15 98,266 27 NA NA NA NA 16,336
13 27 Reliance Industries (India) a; q 21,837 NC 21,837 100 1,793 (11) 1,790 NA NA
14 18 Sumitomo Chemical (Japan) d; q 20,784 13 39,869 50 478 (25) 1,232 13 30,396
15 14 AkzoNobel (Netherlands) 20,315 5 20,315 100 1,642 9 1,090 135 50,320
16 17 Air Liquide (France) 20,230 6 20,230 100 3,344 5 2,649 NA NA
17 19 Linde (Germany) 20,170 10 20,170 100 2,500 3 2,360 133 NA
18 12 Bayer (Germany) d 19,886 10 39,760 67 2,136 78 1,196 1,056 35,300
19 20 IPIC (UAE) 18,840 11 49,167 55 NA NA NA NA NA
20 15 SK Innovation (South Korea) d 18,100 (9) 26,081 25 NA NA NA NA NA
21 16 Evonik (Germany) 17,990 (12) 17,990 100 2,478 2 1,348 519 NA
22 24 Braskem (Brazil) 17,401 9 17,401 100 754 (17) 1,376 52 NA
23 43 Solvay (Belgium) 16,937 70 16,937 100 1,683 130 1,036 345 29,103
24 22 Toray Industries (Japan) d; q 16,843 NC 16,843 100 886 (36) 1,040 566 42,584
25 26 Agrium (Canada) 16,686 8 16,686 100 2,093 1 1,282 NA 14,500
26 29 PetroRabigh (Saudi Arabia) c 16,540 NA 16,540 NA NA NA NA NA NA
27 21 Reliance Industries (India) a; q 16,095 (5) 18,949 24 1,319 (25) 1,498 NA NA
28 25 PTT Global Chemical (Thailand) 15,643 26 156,426 10 931 73 NA NA NA
29 33 Yara (Norway) 15,332 6 15,332 100 2,001 (15) 640 NA 8,052
30 28 PPG Industries (US) 15,200 2 15,200 100 1,402 (12) 411 455 39,200
31 31 Lotte Chemical (South Korea) (formally Honam Petrochemical) 14,928 7 14,928 100 349 (73) 561 27 2,484
32 23 Mitsui Chemicals (Japan) d; q 14,926 (11) 14,951 90 46 NA 601 NA NA
33 34 Syngenta (Switzerland) 14,202 7 14,202 100 2,292 12 620 1,253 27,400
34 36 Monsanto (US) q a 13,504 14 13,504 100 3,148 26 723 1,517 21,500
35 30 CPChem (US) 13,307 (5) 13,307 100 NA NA NA NA NA
36 37 DSM (Netherlands) 12,039 3 12,039 100 581 (44) 904 253 23,498
37 39 Lanxess (Germany) 12,004 4 12,004 100 1,069 4 919 253 17,177
38 35 Shin-Etsu (Japan) 11,895 (2) 11,895 100 1,814 13 947 136 17,712
39 59 Ecolab (US) 11,838 74 11,838 100 1,289 71 607 NA 40,860
40 38 Sasol (South Africa) d; qq 11,588 NC 57,146 55 NA NA NA NA NA
41 40 Praxair (US) 11,224 NC 11,224 100 2,437 (1) 2,180 98 26,539
42 41 Huntsman (US) 11,187 NC 11,187 100 765 27 412 152 12,000
43 46 Mosaic (US) 11,107 12 11,107 100 2,611 (2) 1,639 NA 8,000
44 74 Sekisui Chemical (Japan) 10,958 9 10,977 75 633 122 NA NA 22,202
45 45 Henkel (Germany) 10,885 8 18,692 50 1,570 21 349 NA 24,237
46 47 Asahi Kasei (Japan) d; q 10,559 11 16,680 50 343 (42) 848 NA NA
47 32 3M (US) d 10,346 (25) 29,900 16 2,258 (20) NA NA NA
48 42 BP (UK) 9,858 (9) 375,580 33 166 (85) NA NA NA
49 44 Air Products (US) qqq 9,611 (5) 9,611 100 1,282 (15) 1,521 126 20,900
50 49 Sherwin-Williams (US) 9,534 9 9,534 100 907 22 157 NA 34,154
51 51 ENI (Italy) d 8,472 nc 167,930 25 902 61 227 NA 5,668
52 56 Arkema (France) 8,441 8 8,441 100 859 (9) 632 195 13,759
53 62 Ashland (US) qqq 8,206 26 8,206 100 302 132 298 137 15,000
54 57 Eastman Chemical (US) 8,102 13 8,102 100 800 (15) 470 198 13,500
55 50 PotashCorp. (Canada) 7,927 (9) 7,927 100 3,019 (30) 2,204 NA 5,779
56 80 Teijin (Japan) d; q 7,915 47 8,675 52 131 (9) 329 352 16,637
57 48 DIC (Japan) d; q 7,460 (4) 7,460 100 397 23 282 NA 20,273
58 61 Grupo Alfa (Mexico) 7,417 12 15,152 50 577 27 117 NA 4,700
59 82 Momentive Specialty Chemicals and Performance Materials (US) 7,113 36 7,113 100 163 (55) 231 107 9,680
60 52 Tosoh (Japan) d; q 7,086 (3) 7,086 100 233 2 255 129 11,268
61 70 Indorama (Indonesia) 6,890 13 6,890 100 NA NA NA NA 8,958
62 65 Orica (Australia) (qqq) 6,741 8 6,741 100 655 (36) 628 NA 15,000
63 71 SCG Chemical (Thailand) 6,653 11 13,633 10 NA NA NA NA NA
64 84 Merck KGaA (Germany) d 6,502 30 14,779 50 NA NA NA 400 17,092
65 58 Israel Chemicals 6,471 (3) 6,471 100 1,553 (1) 723 74 12,280
66 91 Cepsa (Spain) d 6,440 44 35,460 25 211 15 113 NA 1,438
67 60 Celanese (US) 6,418 (5) 6,418 100 511 (26) 410 102 7,550
68 76 PKN Orlen (Poland) 6,332 14 33,771 17 389 NA 154 NA NA
69 75 Honeywell (US) 6,184 9 37,665 15 1,154 11 328 NA NA
70 63 Dow Corning (US) 6,119 (5) 6,119 100 NA NA NA NA 12,000
71 64 Wacker-Chemie (Germany) 6,117 (6) 6,117 100 341 (57) 1,243 230 16,292
72 67 CF Industries (US) 6,104 nc 6,104 100 2,959 6 523 22 2,500
73 66 Lubrizol (US) 6,100 nc 6,100 100 NA NA NA NA 7,000
74 54 Clariant (Switzerland) 6,038 8 6,038 100 396 (8) 352 175 21,202
75 72 Liaoning Huajin Tongda Chemical (China) 5,776 (4) 5,776 100 32 (80) 188 14 10,247
76 69 Styron (US) 5,500 (8) 5,500 100 NA NA NA NA 2,100
77 90 Eurochem (Russia) 5,469 22 5,469 100 1,320 21 NA NA NA
78 100 Petronas (Malaysia) 5,428 41 5,428 100 NA NA NA NA NA
79 83 K+S (Germany) 5,194 (2) 5,194 100 1,117 (4) 558 25 NA
80 87 Imerys (France) 5,127 6 5,127 100 638 4 339 NA 16,026
81 77 Kaneka (Japan) q 5,050 2 5,050 100 138 62 360 227 8,600
82 102 Mexichem (Mexico) 5,022 33 5,022 100 670 19 288 NA 17,792
83 73 Taiyo Nippon Sanso (Japan) q 4,965 (2) 4,965 100 247 (22) 360 34 11,468
84 79 Mitsubishi Gas Chemical (Japan) d; q 4,961 3 4,961 100 69 (21) 319 NA 5,323
85 88 Airgas (US) q 4,957 4 4,957 100 596 8 325 NA 15,000
86 68 Hitachi Chemical (Japan) d; q 4,925 (2) 4,925 100 289 4 509 158 17,732
87 81 Tasnee (Saudi Arabia) 4,778 (9) 4,778 100 1,096 (23) 273 NA NA
88 95 Givaudan (Switzerland) 4,665 9 4,665 100 665 37 250 443 9,124
89 86 Occidental Chemical (US) 4,580 (5) 24,253 100 720 (16) 357 NA NA
90 101 Sibur (Russia) 4,443 18 4,443 100 367 NA NA NA NA
91 NA Lonza (US) (Switzerland) 4,287 NA 4,287 100 366 NA 316 127 10,789
92 96 Avery Dennison (US) d 4,255 7 6,035 71 363 16 64 NA NA
93 106 RPM (US) qm 4,078 8 3,777 100 236 (28) 91 49 10,553
94 97 Valspar (US) qo 4,020 1 4,020 100 482 NA 89 117 9,755
95 94 JSR (Japan) q 3,938 6 3,938 100 371 10 295 107 5,659
96 89 Kuraray (Japan) q 3,916 nc 3,916 100 476 (10) 472 167 7,332
97 93 Daicel Chemical Industries (Japan) q 3,805 (11) 3,805 100 278 (29) NA NA NA
98 107 FMC (US) 3,748 11 3,748 100 658 12 206 117 5,700
99 55 Showa Denko (Japan) 3,676 (52) 7,843 70 (21) NA 141 NA NA
100 92 Denki Kagaku Kogyo (Japan) q 3,621 (6) 3,621 100 197 (9) 260 88 5,206
101 104 Westlake Chemical (US) 3,571 (1) 3,571 100 608 36 391 NA 1,895
102 103 Rockwood Holdings (US) 3,506 (4) 3,506 100 438 (20) 286 62 10,200
103 NA Incitec Pivot (Australia) 3,500 NA 3,500 100 173 NA 96 9 5,242
104 105 Tokuyama (Japan) q 3,408 (2) 3,408 100 166 (32) 945 141 5,506
105 108 Axiall (US) 3,325 3 3,325 100 235 97 80 NA NA
106 112 Cabot (US) qqq 3,300 6 3,102 100 290 19 281 73 4,826
107 109 W.R. Grace (US) 3,155 (2) 3,155 100 57 (85) 138 64 6,500
108 53 Asahi Glass (Japan) 2,972 (63) 12,871 20 168 (28) 380 NA NA
109 78 Johnson Matthey (UK) d 2,879 1 3,602 67 396 7 182 142 7,552
110 99 Nippon Shokubai (Japan) 2,861 -- 2,681 100 104 NA 302 109 3,938
Asia leaderboard
(2012 total revenues in dollars)
Sinopec $66,079
Mitsubishi Chemical 28,990
Formosa Plastics 25,236
Sumitomo Chemical 20,784
SK Innovation 18,100
Toray Industries 16,843
Lotte Chemical 14,928
Mitusi Chemicals 14,926
Shin-Etsu 11,895
Sekisui Chemical 10,958
Americas leaderboard
(2012 total revenues in dollars)
ExxonMobil $60,885
Dow Chemical 56,786
DuPont 35,310
Agrium 16,686
PPG Industries 15,200
Monsanto 13,504
CPChem 13,307
Ecolab 11,838
Praxair 11,224
Huntsman 11,187
Europe leaderboard
(2012 total revenues in dollars)
Royal Dutch Shell $45,757
LyondellBasell 37,671
Ineos 30,005
Total 26,050
AkzoNobel 20,315
Air Liquide 20,230
Linde 20,170
Bayer 19,886
Evonik 17,990
Solvay 16,937
Top R&D spenders
(R&D expenditures in dollars)
BASF $2,309
DuPont 2,067
Dow Chemical 1,708
Monsanto 1,517
Syngenta 1,253
Bayer 1,056
Toray Industries 566
Evonik 519
PPG Industries 455
Givaudan 443
Big spenders
(2012 capital expenditures in dollars)
BASF $5,268
Sinopec 3,785
Sabic 2,871
Air Liquide 2,649
Dow Chemical 2,614
Linde 2,360
PotashCorp 2,204
Praxair 2,180
DuPont 1,793
Reliance Industries 1,790



Comments (2) for Billion Dollar Club: 2012 BASF takes top ranking for seventh straight year
1.
Why does Reliance appear twice on the list, at 13th and 27th?
Posted by Shen on Wednesday, October 23, 2013 @ 02:44 AM
2.
I'm guessing that it's an editing error; it looks like #13 should be LG Chem. Of course, that's just a guess; hopefully, someone will decide to let us know.
Posted by TIm on Wednesday, October 30, 2013 @ 09:29 AM










 
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