BASF: First Quarter Results
In an extremely difficult environment, BASF’s business declined in the first quarter of 2009. At EUR 12.2 billion, sales were 23 % lower than in the first quarter of 2008, primarily due to persistently weak demand. Income from operations (EBIT) before special items fell by 58 % to EUR 985 million as a result of a substantial decrease in volumes in many divisions.
A drastic decline in sales was also recorded in the Plastics segment, mainly due to substantially lower volumes compared with the same quarter of the previous year. Earnings declined considerably and were slightly negative – in particular, as a result of low margins and high costs of idle capacity in the Performance Polymers division.
In view of the enormous economical challenges BASF will restructure and, where necessary, close or sell plants and sites that cannot ensure the company’s long-term competitiveness. The company will cut at least 2,000 positions by the end of 2009.
In 2009, despite the acquisitions of Ciba Holding AG and Revus Energy ASA, BASF expects a decline in sales compared with 2008 and an even greater decline in income from operations, which will be negatively impacted by integration costs.
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