BASF launches billion-euro improvement plan
31/10/2008
Chemical company BASF has ended the third quarter of 2008 with what it has called "solid results in a significantly more difficult economic environment". All operating divisions increased their prices, and volumes rose in almost all segments. Overall, sales rose by 13% to €15.8 billion. Adjusted for currency effects, sales grew by 18%.
Dr Jürgen Hambrecht, chairman of the board of executive directors of BASF, said: “The impact of the global financial crisis on the real economy is speeding up and hitting harder. The decline in demand in important markets, stockpiling by our customers and the fall in oil prices are all signs of a recessionary trend that is likely to sharpen in 2009.”
Worldwide, BASF is responding to declining demand by adjusting capacity and bringing forward maintenance-related shutdowns. In addition to ongoing activities to reduce costs, the company has launched a new efficiency program called NEXT.
NEXT stands for a new dimension of value creation at BASF. The program involves all regions, divisions and functions at BASF and encompasses more than 500 individual projects. These range from the simplification of processes and increased bundling of resources through to the use of new technology.
The company has said it expects NEXT to contribute more than €1 billion to earnings per year from 2012 onwards. A large proportion of this amount is expected to be achieved as early as 2009 and 2010.
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