BASF SE

Management Reports • Jun 21, 2001

News Details

Ad-hoc | 21 June 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. ——————————————————————————– BASF’s Chairman: Growth in global economy is slower than expected > Earnings goal will be achieved only through extraordinary efforts > Action plan being implemented In light of continuing high raw material prices, weaker signs of growth in Europe, and no indication of an economic upturn in the United States, BASF is not expecting an increase in income from operations in the second quarter. “Nevertheless, we remain committed to our ambitious, medium-term goal and want to increase our income from operations before special items by an average of at least 10 percent for the years 2000 to 2002,” said Dr. Jürgen F. Strube, Chairman of BASF’s Board of Directors. “We will only achieve this goal through extraordinary efforts,” he added. The prerequisite for this is that BASF more quickly transforms innovation and investment into market success and rapidly implements the action plan which the Board of Executive Directors has established. These measures include: > The current capital expenditure program will be reduced by a fifth. In the medium-term, capital expenditures will be reduced to the level of depreciation. > Globally, 10 sites and an additional 14 plants will be closed and thus production capacities will be taken off the market > The further development of the global organizational structure under the “Fit For the Future” program will be implemented at an accelerated rate. end of ad hoc announcement (c) DGAP 21.06.2001 ——————————————————————————– WKN: 515 100; Index: DAX, EURO STOXX 50 Listed: Amtlicher Handel in Berlin, Bremen, Düsseldorf, Frankfurt, Hamburg, Hannover, München und Stuttgart; London; Paris; 210800 Jun 01