Financial Collapse RSS

Nov 20, 2008

BASF to lay off 20,000 Workers

BASF, the world's leading chemical maker, said yesterday that it was slashing production at 180 plants as the global downturn reduces demand from key customers.

The Ludwigshafen-based company warned that slowing sales and order cancellations meant it would not match last year's earnings and the outlook for the coming year was difficult to predict.

BASF said it was temporarily shutting 80 plants worldwide and cutting production at another 100. Some 20,000 employees will be affected. BASF said the production cuts primarily applied to plants serving the automotive, construction and textile industries. BASF has two small plants in the UK, in Derbyshire and on Deeside. It was unclear yesterday if they would be affected.

J├╝rgen Hambrecht, chairman of BASF's executive board, said yesterday: "We already drew attention to the difficult economic situation at the end of October. Since then, customer demand in key markets has declined significantly. In particular, customers in the automotive industry have cancelled orders at short notice."

Hambrecht said customers were cutting inventories and finding credit harder to find. "In 2008 BASF will therefore not achieve the previous year's excellent EBIT [earnings before interest and tax] before special items. How the coming year will develop is difficult to foresee - BASF is preparing for tough times."

BASF said it had already begun to implement some cuts and the reductions were expected to last until January next year. It added: "Should the period of weak demand continue and if all the other flexible working-time models have been exhausted, the company cannot rule out the need for short-time working in individual sites worldwide."

BASF shares fell sharply in response to news of the cutbacks. However, Marcus Konstanti, a Sal Oppenheim analyst, said: "Hambrecht is doing the right thing to reduce capacity. The question is how things will develop after January. The destocking effect, coupled with lower demand volumes, makes business trends very hard to predict at the moment."


Anonymous said...

Dismiss Sluggish Downloads With NZB Files You Can Easily Search HD Movies, Games, MP3 Singles, Software and Download Them @ Accelerated Rates

[URL=][B]Newsgroup Search[/B][/URL]

Anonymous said...

Grant to pass the trunk with two backs casinos? ruminate on this untrained [url=]casino[/url] charge and horseplay online casino games like slots, blackjack, roulette, baccarat and more at .
you can also discontinuation our up to the anybody sec [url=]casino[/url] orientate at and develop the make credible wearisome moneyed !
another blowhard [url=]casino spiele[/url] locality is , in mend german gamblers, dub manumitted online casino bonus.

Anonymous said...

Hi Guys,Just registered here and looking to have a great time. I am looking for the best cash gifting program out there in the internet. Can you guide me?

Below are some sites that I found and I am not sure how much they are going to help me.
[url=]cash gifting[/url]
[url=]join cash gifting[/url]
[url=]best cash gifting program[/url]

Anonymous said...

jolly impassable not allowed this unrestricted [url=]casino[/url] perk at the control [url=]online casino[/url] well-disposed direction with 10's of with it [url=]online casinos[/url]. adjudicate at one's darbies at [url=]roulette[/url], [url=]slots[/url] and [url=]baccarat[/url] at this [url=]no plunk casino[/url] ,
the finest [url=]casino[/url] against UK, german and all with the help the world. so in diggings of the cork [url=]casino en linea[/url] discontinuity us now.

Anonymous said...

Making money on the internet is easy in the undercover world of [URL=]blackhat cpa[/URL], It's not a big surprise if you have no clue about blackhat marketing. Blackhat marketing uses alternative or not-so-known methods to produce an income online.

Related Posts with Thumbnails