BASF Faces a Drop in Profits Because of the Vitamin Cartel.(Brief Article)

Chemical Market Reporter, March, 2000 by MILMO, SEAN

The company otherwise posted strong results in 1999. BASF SUFFERED a 23 percent drop in operating profit in 1999, mainly because of provisions for fines and damages from its involvement in a vitamins cartel. The company's operating profit fell to [epsilon]2 billion after the inclusion of the special items, without which it would have risen by 16 percent to [epsilon]2.9 billion ($2.8 billion).

Provisions for legal costs, damages and fines amounted to [epsilon]727 million, most of which stemmed from the vitamins scandal. Last May, BASF agreed to pay $225 million in fines following an investigation by the US Department of Justice. The company also agreed to a $287 million payment as part of the settlement of a class-action lawsuit by US customers....

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