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BASF: Weathering the storm (part 2)
Ludwigshafen (ots) -
- Second quarter income from operations before special items EURO
751 million (-14.9 percent), sales EURO 8,329 million (-7.1
- All segments post positive earnings before special items
- EURO 447 million special items in the second quarter for
- Earnings per share before special items fall 31.3 percent to
Despite difficult economic conditions all of BASF's segments
posted positive earnings before special items in the second quarter
of 2001. However, chemical businesses are particularly hard hit by
the currently weak demand. Volatile prices for raw materials are
continuing to put margins under pressure. In the second quarter,
income before taxes and minority interests (EURO 201 million) was
reduced by special items of EURO 447 million for restructuring, and
therefore fell by 78.9 percent.
BASF's long-term goal is adding value through growth and innovation. To achieve this goal, BASF's Board has implemented a series of coordinated programs and initiatives.
As a result of these measures, BASF wants to achieve annual cost advantages of EURO 400 million from the streamlining of its organization globally. BASF expects to save an additional EURO 160 million by the end of 2002 by further optimizing its global procurement of technical goods and services. Site and plant closures will lead to cost savings of EURO 190 million. In addition, BASF will reduce capital expenditures in 2002 by EURO 400 million in line with the changed expectations in the market.
In addition to the measures and closures it has already announced, BASF intends to reduce its global workforce by a further 1,200 in the coming 18 months. The number of job reductions will therefore total 4,000.
To implement this package of measures, BASF recorded special items of EURO 447 million in the second quarter. These were related mainly to current and future site and plant closures as well as accelerated restructuring.
Share buy-back program to be accelerated
BASF reaffirms its aim of buying back shares for EURO 1.3 billion by the end of the year. In the first half of 2001, BASF repurchased about 410,000 shares for EURO 19 million. The primary aim of the program is to reduce BASF's equity ratio and costs of capital. BASF will also continue its share buy-back program in 2002. ots Original Text Service: BASF Internet: http://www.presseportal.de
Contact: Michael Grabicki Tel. (06 21) 60-9 99 38 Fax (06 21) 60-2 01 29 firstname.lastname@example.orgOriginal-Content von: BASF SE, übermittelt durch news aktuell