BASF SE / Forecast 19.01.2009 Release of a UK Regulatory Announcement, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Disappointing business in December and January makes short-time working unavoidable Decline in demand and destocking continue Restructuring and efficiency programs accelerated Concrete measures at BASF: Short-time working at several European sites; Production line and site closures in North America and Asia BASFs global business declined significantly in December 2008. In all regions, demand for chemical products has not picked up in the first half of January and customers are continuing to destock. BASFs chairman, Dr. Jürgen Hambrecht, said that he currently sees no signs of a turnaround. The situation remained tough and difficult to predict, and BASF does not expect the economic environment to improve in the coming months. The decline in business is greater than expected in November and will negatively impact earnings. BASF reduced capacity utilization at its production plants at its six Verbund sites worldwide in mid-November. On average, the capacity utilization rate within the BASF Group is currently less than 75 percent. Only demand for crop protection products and products for the food industry remains high. Since implementing the production capacity reductions, BASF has wherever possible been using flexible working time arrangements such as reduction of overtime and holiday accounts at the affected sites worldwide. In doing so, the company is also utilizing the benefits offered by its integrated approach to production known as Verbund, which allows employees to be transferred between plants with varying capacity utilization rates. Flexible working time arrangements are no longer sufficient to absorb the effects of production cuts everywhere. This applies primarily to sites that manufacture products for the automotive industry. For example, short-time working will be introduced in February for approximately 1,500 employees at BASF Coatings site in Münster, Germany, and for 180 employees in Schwarzheide, Germany. Working hours have already been reduced for about 150 employees at two smaller coatings sites in Italy. BASF cannot rule out the introduction of short-time working at further sites. In Ludwigshafen and Antwerp, it can be avoided for the time being thanks to the use of flexible manpower planning. The companys management has already agreed a preliminary framework with employee representatives that will allow the rapid introduction of short-time working in Ludwigshafen if necessary. Hambrecht explained that BASF would maintain strict discipline with regard to costs and expenditures and would accelerate the implementation of its existing global restructuring and efficiency programs. BASF has already announced plant closures in North America and Asia: Examples include a BASF coatings site in New Jersey and a production plant for precursors for plastics in Korea. These closures will result in a reduction of almost 200 jobs. Further job reductions may be necessary, depending on how economic conditions develop. In that event, the company will seek socially responsible solutions and will proceed with a long-term perspective. Gareth Rees Phone: +49 621 60-20732 Fax: +49 621 60-92693 gareth.rees@basf.com DGAP 19.01.2009 --------------------------------------------------------------------------- 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, 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 Category Code: MSC LSE Ticker: BFA Sequence Number: 60 Time of Receipt: Jan 19, 2009 12:25:00 End of News DGAP News-Service ---------------------------------------------------------------------------
DGAP-UK-Regulatory: BASF SE:Disappointing business in December and January makes short-time working unavoidable
| Source: EQS Group AG