BASF SE — Earnings Release 2001

Aug 7, 2001

News Details

Ad-hoc | 7 August 2001 08:00

BASF AG english

Ad hoc announcement processed and transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Second-quarter results BASF: Weathering the storm > Second quarter income from operations before special items EUR 751 million (-14.9 percent), sales EUR 8,329 million (-7.1 percent) > All segments post positive earnings before special items > EUR 447 million special items in the second quarter for restructuring > Earnings per share before special items fall 31.3 percent to EUR 0.44 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 (EUR 201 million) was reduced by special items of EUR 447 million for restructuring, and therefore fell by 78.9 percent. Restructuring program 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 EUR 400 million from the streamlining of its organization globally. BASF expects to save an additional EUR 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 EUR 190 million. In addition, BASF will reduce capital expenditures in 2002 by EUR 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 EUR 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 EUR 1.3 billion by the end of the year. In the first half of 2001, BASF repurchased about 410,000 shares for EUR 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. end of ad hoc announcement (c) DGAP 07.08.2001 ——————————————————————————– WKN: 515 100; Index: DAX, EURO STOXX 50 Listed: Amtlicher Handel in Berlin, Bremen, Düsseldorf, Frankfurt, Hamburg, Hannover, München und Stuttgart; London; Paris 070800 Aug 01