German chemicals giant BASF reported Friday that its net profit in 2014 grew by 7.6 percent to 5.1 billion euros ($5.8 billion) in line with its earnings targets for the year. Operating profit was up 6.5 percent at 7.6 billion euros, while sales edged 0.5 percent higher to 74.3 billion euros.

BASF Chief Executive Kurt Bock told reporters at the chemicals group's annual news conference that earnings were increased despite the "disappointing economic development in Europe."

"We grew profitably. We further strengthened our chemicals business and in turn improved our margins," Bock added.

In the fourth quarter, the result was significantly boosted by the sale of its half of the Styrolution joint venture. Its partner, UK-based Ineos, bought out BASF with 1.1 billion euros

Difficult outlook

Business in chemicals is generally seen as a barometer for global economic activity. Last year prices in the industry slipped on the back of slumping oil prices - a main feedstock for BASF.

Therefore, BASF's outlook for 2015 was subject to "significant uncertainty," said CEO Bock, adding: "Oil and raw material prices are volatile, as are currencies; the emerging markets are growing more slowly; and the global economy is being dampened by geopolitical conflict."

Nevertheless, BASF strives to "perform well" in this challenging environment, aiming to increase sales slightly in 2015. Underlying profit before extraordinary items is expected to match the previous year's level.

BASF said it planned to increase its dividend to shareholders to 2.80 euros per share for 2014 from 2.70 euros a year earlier.

uhe/ng (AFP, dpa, Reuters)