• Germany's news in English

BASF's profits fall amid rocky recovery

AFP · 29 Oct 2009, 10:34

Published: 29 Oct 2009 10:20 GMT+01:00
Updated: 29 Oct 2009 10:34 GMT+01:00

Facebook Twitter Google+ reddit

The world's largest chemical company said net profit plunged 68.7 percent from the same period a year earlier to €237 million owing to costs stemming from the integration of the Swiss company Ciba.

Sales fell 18.9 percent to €12.8 billion, while core earnings before interest and tax (EBIT) were down 35.7 percent at €971 million, a statement said. EBIT before special items fell 20.4 percent to €1.25 billion.

Sales nonetheless gained two percent from the second quarter of 2009 and EBIT was up by nine percent from that three-month period, the group said.

"Overall, there is much to suggest that the worst is behind us. After a steep plunge, we are now climbing gradually out of the trough," BASF chairman Jürgen Hambrecht said in the statement.

"The recovery will be slow and uneven," he added.

The company said customers appeared to be replenishing their stocks but that they were "still placing smaller orders at increasingly short notice, especially closer to the end of the year."

Meanwhile, BASF continued with the integration of Ciba, a specialty chemicals company that the German group bought last year, saying it "is making rapid progress and faster than planned in some areas."

That also meant, however, "that a larger proportion of the related costs will be incurred in 2009," and BASF expected them to amount to more than €800 million.

Around 3,800 jobs would also be eliminated, for the most part by the end of 2010, it said. As of September 30, BASF employed 105,850 workers, it added.

Looking ahead, the group said it "anticipates a significant decline in sales and earnings for the full year 2009."

Story continues below…

The higher costs of integrating Ciba meant that "BASF is therefore unlikely to reach its goal of earning its cost of capital this year," Hambrecht said.

A breakdown of the figures showed that sales fell in both the key chemical and plastics units but that earnings were higher than in the third quarter of 2008 owing to the company's "value over volume" pricing strategy.

BASF shares plunged 4.0 percent to €35.52 in early trading on the Frankfurt stock exchange while the DAX index of leading shares was 0.46 percent lower overall.

Facebook Twitter Google+ reddit

Your comments about this article

Today's headlines
Student fined for spying on women via their webcams
Photo: DPA

Student from Munich fined €1,000 for spying on 32 different computers, using their webcams to take photographs, or record their keyboard history.

This is how much startup geeks earn in Germany
Photo: DPA

A comprehensive new survey of 143 startup founders shows how much you are likely to be earning at a German startup, from entry level all the way up to sitting on the board.

Man dies after beating for peeing near Freiburg church
The Johannes Church in Freiburg. Photo Jörgens Mi/Wikipedia

A middle-aged man from southern Germany has died after being attacked by a group of men who took umbrage with the fact he was urinating in the vicinity of a church.

The Local List
Seven German celebrities with uncanny doppelgängers
Former Berlin mayor Klaus Wowereit and actor Alec Baldwin. Photo: DPA; Gage Skidmore, Wikimedia Commons

Check out these seven look-a-likes of well known German figures - we admit that some are more tenuous than others...

Israel seeks to buy three new German submarines: report
A Dolphin class submarine. Photo: DPA

Israel is seeking to buy three more advanced submarines from Germany at a combined price of €1.2 billion, an Israeli newspaper reported Friday.

Here’s where people live the longest in Germany
Photo: DPA

Germans down south seem to know the secret to a long life.

More Germans identify as LGBT than in rest of Europe
Photo: DPA

The percentage of the German population which identifies as lesbian, gay, bisexual or transgender is higher than anywhere else in Europe, according to a new study.

'Reichsbürger' pair attack police in Saxony-Anhalt
File photo: DPA.

A "Reichsbürger" and his wife attacked police officers on Thursday, just a day after another Reichsbürger fatally shot an officer in Bavaria.

Five things not to miss at the Frankfurt Book Fair
Photo: DPA

From consulting a book doctor to immersing yourself in an author's world with the help of virtual reality, here are five things not to miss at this week's Frankfurt Book Fair, the world's largest publishing event.

Parents who don't get nursery spot for kid entitled to pay
Photo: DPA

The Federal Court of Justice (BGH) ruled on Thursday that parents whose children don't receive placements in nursery care are entitled to compensation.

Sponsored Article
How to vote absentee from abroad in the US elections
10 things you never knew about socialist East Germany
Sponsored Article
Last chance to vote absentee in the US elections
How Germans fell in love with America's favourite squash
How I ditched London for Berlin and became a published author
Sponsored Article
How to vote absentee from abroad in the US elections
12 clever German idioms that'll make you sound like a pro
23 fascinating facts you never knew about Berlin
9 unmissable events to check out in Germany this October
10 things you never knew about German reunification
10 things you're sure to notice after an Oktoberfest visit
Germany's 10 most Instagram-able places
15 pics that prove Germany is absolutely enchanting in autumn
10 German films you have to watch before you die
6 things about Munich that’ll stay with you forever
10 pieces of German slang you'll never learn in class
Ouch! Naked swimmer hospitalized after angler hooks his penis
Six reasons why Berlin is now known as 'the failed city'
15 tell-tale signs you’ll never quite master German
7 American habits that make Germans very, very uncomfortable
Story of a fugitive cow who outwitted police for weeks before capture
Eleven famous Germans with surnames that'll make your sides split
The best ways to get a visa as an American in Germany
jobs available
Toytown Germany
Germany's English-speaking crowd