BASF Shows Strength in Global Crisis    

By Tanya Tian   

BASF's business declined in the first quarter of 2009. At Euro 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 Euro 985 million as a result of a substantial decrease in volumes in many divisions.
   Sales and earnings decline in all regions. In Asia Pacific, sales decreased by 42% in local currency terms and by 34% in euro terms. EBIT before special items fell substantially by Euro 171 million to Euro 53 million. The considerable decline in sales and earnings affected almost all segments and was due in particular to the sharp fall in the export business of customer industries. In contrast, sales and earnings increased in the Agricultural Solutions segment as a result of the high demand in Japan, China and India.
    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.
   BASF has about 6 300 employees in Greater China and posted sales of about Euro 4.2 billion in 2008. The company operates 19 BASF wholly owned subsidiaries and 10 BASF joint ventures in Greater China.