Chemistry - BASF no longer states sales targets
The chemical group BASF is spinning off two of its divisions. Following the example of the coatings business, the battery materials and agriculture divisions are also to be transferred to independent units. A company spokesperson confirmed corresponding information from the IGBCE trade union on Thursday. However, there are no plans to sell the divisions or make redundancies. According to the union, the spin-off will affect almost 2,500 jobs at the company's headquarters in Ludwigshafen alone. Meanwhile, BASF no longer intends to specify sales targets in future and is setting itself margin targets for individual business areas.
With the spin-off of the battery, agricultural and coatings business, the Board of Executive Directors wants to give the divisions more freedom so that they can better adapt to their customers. The businesses with basic chemicals (Chemicals), plastics (Materials), additives (Industrial Solutions) and ingredients for consumer goods (Nutrition & Care) are to remain strongly integrated.
The trade union criticized the planned spin-offs. "The year ends for the employees, as it began, with bad news," said IGBCE district manager Gunther Kollmuß according to the press release. The outsourcing affects almost ten percent of the workforce in Ludwigshafen alone. On a positive note, Kollmuß said that there would be no redundancies. The trade union and works council are now pushing for a "Site Agreement 2030" for Verbund and all units affected by the current development.
Group CEO Martin Brudermüller rejected the idea of a possible sale of the divisions and possible wage dumping. The divisions will "all remain part of BASF". According to CFO Dirk Elvermann, around 2390 jobs in Germany are affected. The global figures have not yet been determined.
Meanwhile, following the slump in business in the current year, the Board of Executive Directors no longer intends to provide sales forecasts from 2024. From the presentation of the balance sheet on February 23, there will only be targets for earnings before interest, taxes, depreciation and amortization and special items (adjusted EBITDA) as well as cash inflow, the DAX-listed company announced at an investor event in Ludwigshafen. This means that BASF is also changing its key operating profit indicator: previously, the focus had been on earnings before interest, taxes and special items (adjusted EBIT).
The Russian war of aggression against Ukraine and its consequences for the economy have shaken BASF to the core. In 2022, the withdrawal of the Group subsidiary Wintershall Dea from Russia and the write-downs on the stake in the gas pipeline company Nord Stream AG resulted in a billion-euro loss for the chemical giant BASF.
Press release
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- Despite the spin-off of its battery materials and agriculture divisions, BASF has confirmed that these divisions will remain part of the company, affecting around 2390 jobs in Germany, as announced by CFO Dirk Elvermann.
- In light of the Russian war of aggression against Ukraine and its impact on the economy, BASF has reported a billion-euro loss for 2022 due to the withdrawal of its subsidiary Wintershall Dea from Russia and write-offs on its stake in the gas pipeline company Nord Stream AG.
- With the spin-off of its battery, agricultural, and coatings business, BASF is no longer committed to specifying sales targets, instead setting margin targets for individual business areas, such as Chemistry and Nutrition & Care, as part of its new approach to corporate strategy.
Source: www.stern.de
