Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Xetra  >  BASF SE    BAS   DE000BASF111

BASF SE

(BAS)
  Report  
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

With visibility low, BASF forges ahead with efficiency drive

share with twitter share with LinkedIn share with facebook
share via e-mail
0
09/27/2019 | 04:37am EST
FILE PHOTO: The chemical company BASF building in Levallois-Perret is seen at sunset

FRANKFURT (Reuters) - BASF told investors on Friday it was pressing on with its drive to make its business simpler and more efficient, confirming its forecasts after issuing a profit warning in July while cautioning that visibility was low.

The world's largest chemicals company by sales will hit its target of saving costs by an annual 2 billion euros (£1.77 billion), CEO Martin Brudermueller said at a presentation that added detail to, but did not tweak, BASF's strategic goals.

"The sense of urgency is very clearly there," Brudermueller said in response to a question about whether BASF's divisional bosses understood the need to transform the business that spans everything from petrochemicals to agriculture.

"I have never seen any phases at BASF where we have changed so many pieces so quickly," added Brudermueller, who has worked for the company for more than 30 years and became CEO in May 2018.

Brudermueller has kept divergent businesses folded into one company even as competitors have take more radical action to restructure in the face of growing trade and technology challenges.

BASF last November set a long-term goal for growth in core earnings (EBITDA) before special items of 3-5% per year. In June, it laid out plans to slash 6,000 jobs worldwide, mainly in central administration.

It then shocked markets in July with a profit warning, predicting a decline in 2019 adjusted EBITDA of as much as 30%, as a global economic slowdown and trade war between the United States and China hit demand.

Executives said on Friday that business in July, August and so far in September was in line with a year ago.

Yet visibility is shortening, said Chief Financial Officer Hans-Ulrich Engel, who noted that 75-80% of BASF's order book was covered by the two months ahead.

The divestiture of its construction chemicals business should be signed this year, while BASF wants to float its oil and gas venture with Russian billionaire Mikhail Fridman's LetterOne, Wintershall DEA, in late 2020.

Net debts have been pushed up to 18.5 billion euros by the acquisition last year of assets from Bayer. Engel said he would be more comfortable with a level around 15 billion.

BASF said in a separate presentation its agriculture division would outgrow the global market by one percentage point a year and increase sales by half through 2030 as it innovates in crops and digital farming.

BASF Agricultural Solutions will launch over 30 new products by 2028, with peak sales potential of 6 billion euros. The division aims to grow core earnings before special items by 5% per year.

(Reporting by Douglas Busvine; Editing by Mark Potter)

Stocks mentioned in the article
ChangeLast1st jan.
BASF SE 0.43% 68.38 Delayed Quote.13.21%
BAYER AG 1.73% 71.01 Delayed Quote.17.26%
LONDON BRENT OIL 0.70% 64.9 Delayed Quote.18.27%
WTI 0.32% 59.76 Delayed Quote.30.11%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on BASF SE
12/12BASF : invests in pioneering Israeli AgTech startup Equinom
PU
12/11BASF SE : Notification and public disclosure of transactions by persons
EQ
12/10MARKET-READY AND CERTIFIED : insulation raw material Neopor® from BASF with sign..
PU
12/06SCHNEIDER ELECTRIC : increases visibility into operations with the implementatio..
AQ
12/05BASF : to double production capacity of automotive refinish coatings at Jiangmen..
PU
12/04Oil companies swap stakes in Mexico as government holds off on auctions
RE
11/28A union between Orange and Deutsche Telekom?
11/27EXCLUSIVE : Lone Star in exclusive talks to buy BASF construction chemicals unit..
RE
11/27IPO candidate Wintershall Dea raises 2019 production outlook
RE
11/26UTRECHT UNIVERSITY : 'Collaboration is an essential condition for this degree of..
AQ
More news
Financials (EUR)
Sales 2019 61 912 M
EBIT 2019 4 694 M
Net income 2019 9 118 M
Debt 2019 18 545 M
Yield 2019 4,75%
P/E ratio 2019 6,85x
P/E ratio 2020 17,6x
EV / Sales2019 1,31x
EV / Sales2020 1,26x
Capitalization 62 806 M
Chart BASF SE
Duration : Period :
BASF SE Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends BASF SE
Short TermMid-TermLong Term
TrendsBearishBullishNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 26
Average target price 66,56  €
Last Close Price 68,38  €
Spread / Highest target 28,7%
Spread / Average Target -2,67%
Spread / Lowest Target -29,9%
EPS Revisions
Managers
NameTitle
Martin Brudermüller Chairman-Executive Board & CTO
Jürgen Hambrecht Chairman-Supervisory Board
Hans-Ulrich Engel CFO & Vice Chairman-Executive Board
Michael Diekmann Vice Chairman-Supervisory Board
François Diederich Member-Supervisory Board
Sector and Competitors
1st jan.Capitalization (M$)
BASF SE13.21%69 542
DUPONT DE NEMOURS, INC.-11.48%49 034
SHIN-ETSU CHEMICAL CO., LTD.52.44%45 907
ROYAL DSM59.36%21 325
GROUPE BRUXELLES LAMBERT23.24%16 273
ASAHI KASEI CORPORATION15.64%15 658