BASF SE / Change in Forecast
19.11.2008
Release of a Adhoc News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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BASF reduces production worldwide
Massive decline in demand in key industries
Previous years earnings level will not be achieved
Ludwigshafen, Germany November 19, 2008 BASF is taking measures to
avoid the creation of overcapacities as a result of a massive decline in
demand. The company is temporarily shutting down around 80 plants
worldwide. In addition, BASF is reducing production at approximately 100
plants. This was already announced for polystyrene and caprolactam.
Scheduled maintenance work is being brought forward.
BASF already drew attention to the difficult economic situation at the end
of October. Since then, customer demand in key markets has declined
significantly. In particular, customers in the automotive industry have
canceled orders at short notice. In addition, sales volumes are being
negatively impacted by increased reduction of inventory by customers and a
lack of credit in customer industries.
In 2008, BASF does not expect to achieve the previous years excellent EBIT
before special items. Dr. Jürgen Hambrecht, Chairman of the Board of
Executive Directors of BASF SE explained that it was difficult to foresee
how the coming year would develop and said that BASF was preparing for
tough times.
Worldwide, approximately 20,000 employees will be affected by the
production cuts. Flexible working time arrangements will be used wherever
possible.
At the companys main site in Ludwigshafen, Germany, BASF SE has signed an
agreement with the works council under which the measures will be
implemented through the flexible use of working time arrangements such as
overtime and vacation. According to current plans, the measures are
expected to affect approximately 5,000 employees in Ludwigshafen.
'We are responding flexibly to market developments and are acting quickly,'
explained Hambrecht. 'BASF will now focus even more closely on cost and
budget discipline, and will use opportunities arising from the crisis. We
will also proceed swiftly with the planned acquisition and integration of
Ciba to further optimize our business.'
The adjustments are primarily being carried out in units that supply the
automotive, construction and textile industries. Value chains affected
include ammonia, styrene and polyamide, which manufacture precursors for
engineering plastics, coatings and fibers. The shutdowns will be
coordinated throughout BASFs global production Verbund and will involve
all six Verbund sites in Europe, Asia and North America, as well as other
sites. Implementation of most of the measures has already started; reduced
capacities are expected to last until January 2009 for individual plants.
Should the period of weak demand continue and if all other flexible working
time models have been exhausted, the company cannot rule out the need for
short-time working at individual sites worldwide.
BASF will continue to follow market developments very closely and will
adjust production planning accordingly. 'We are realistic, but we are
nevertheless confident when we look to the future,' said Hambrecht. 'We
have made BASF more resilient in the past years. The strength of our better
balanced portfolio makes itself apparent in the current difficult
situation. BASF is solidly financed.'
Gareth Rees
Phone: +49 621 60-20732
Fax: +49 621 60-92693
gareth.rees@basf.com
DGAP 19.11.2008
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Language: English
Issuer: BASF SE Carl-Bosch-Straße 38
67056 Ludwigshafen
Deutschland
Phone: +49 (0)621 60-0
Fax: +49 (0)621 60-4 25 25
E-mail: info.service@basf.com
Internet: www.basf.com
ISIN: DE0005151005, DE000A0JRFB0, Börse Dublin, Frankfurter Wertpapierbörse, , DE000A0JRFA2, Börse Dublin, Frankfurter Wertpapierbörse, , DE000A0JQF26, Börse Dublin, Frankfurter Wertpapierbörse, , DE000A0EUB86, Frankfurter Wertpapierbörse, , DE0008846718, Frankfurter Wertpapierbörse,
WKN: 515 100, WKN A0JRFB, Börse Dublin, Frankfurter Wertpapierbörse, , WKN A0JRFA, Börse Dublin, Frankfurter Wertpapierbörse, , WKN A0JQF2, Börse Dublin, Frankfurter Wertpapierbörse, , WKN A0EUB8, Frankfurter Wertpapierbörse, , WKN 884671, Frankfurter Wertpapierbörse,
Indices: DAX, EURO STOXX 50
Listed: Regulierter Markt in Berlin, Frankfurt (Prime Standard),
Hannover, Düsseldorf, Stuttgart, München, Hamburg;
Terminbörse EUREX; Foreign Exchange(s) London, SWX
End of News DGAP News-Service
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DGAP-Adhoc: BASF SE:BASF reduces production worldwide
| Source: EQS Group AG