The biggest chemical company of the world, BASF SE stated that its gain more than two folded as demand from the automotive industry increased. As a result of that the company proposed a better-than-estimated dividend.

Net income of the firm in its fourth quarter went up by 1.1 billion euros ($1.5 billion) from four hundred and fifty five million euros seen one year earlier, the company based in Ludwigshafen, Germany, said. Analysts foretold a sum of nine hundred and forty five million euros. A proposed dividend of 2.20 euros also surpassed a Bloomberg forecast of 2.10 euros.

BASF started off with flying colors in this year and predicted a further increase in sales and earnings in 2012, even with raw-material prices surging.

Juergen Hambrecht, the chief executive officer has made purchases to expand in personal-care chemicals and additives and plans to employ a further two thousand nine hundred workers in this year. Though demand is coming back but still BASF is faced with margin pressure from input costs, JPMorgan Cazenove analysts stated in a note.

There can be an expectation of some debate over the direction of margins which will restrict the upside, JPMorgan’s Martin Evans and Neil Tyler said in a note. However, BASF has a continuing track record of being able to lessen raw-material costs across the chemicals selections.

The firm, in its earnings before interest and taxes saw a sum of 1.69 billion euros, which is below predictions averaging 1.92 billion euros.

BASF has gone down in the tune of 1.6 percent in this year, valuing the business at almost fifty four billion euros. Dow Chemical Co. has added five and a half percent. Any fall in the share price is a chance to invest, JPMorgan’s Heidi Vesterinen, Tyler and Evans said.