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BASF suspends work and cuts profit target

The world's biggest chemical company, BASF, said Wednesday it would cut global output and suspend operations at 80 plants, affecting 20,000 workers and dropping its 2008 operating profit target. Shares in the company plunged in mid-day trading on the Frankfurt stock exchange as a result.

Published: 19 November 2008 15:29 CET
BASF suspends work and cuts profit target
Photo: DPA

“BASF is taking measures to avoid the creation of overcapacities as a result of a massive decline in demand,” primarily in the automotive construction and textile industries, the company said in a statement. The group “is temporarily shutting down around 80 plants worldwide. In addition, BASF is reducing production at approximately 100 plants,” following decisions that had already been revealed in part.

The group said it would seek where possible to diminish the effects of the decisions with the use of “flexible working time arrangements.” On October 30, the chemical giant had already lowered 2008 earnings targets and voiced concern about a possible recession next year, while saying it would cut 1,000 jobs by 2012.

“Since then, customer demand in key markets has declined significantly. In particular, customers in the automotive industry have cancelled orders at short notice,” the statement said Wednesday. “In 2008, BASF does not expect to achieve the previous year’s excellent EBIT (earnings before interest and tax) before special items,” it added.

Chairman Juergen Hambrecht “explained that it was difficult to foresee how the coming year would develop and said that BASF was preparing for tough times.” The production decreases were expected to last until January for some plants, the statement said. But it warned that “should the period of weak demand continue and if all other flexible working time models have been exhausted, the company cannot rule out the need for short-time working at individual sites worldwide.”

In early afternoon trading, BASF shares plunged by 16.91 percent to €21.13, while the DAX index of German blue-chips was down by 3.25 percent overall.

The decision was expected to affect around 5,000 workers at BASF headquarters in Ludwigshaven in southwestern Germany.

“We are responding flexibly to market developments and are acting quickly,” the statement quoted Hambrecht as saying. BASF would now focus on cost and budget discipline, and “also proceed swiftly with the planned acquisition and integration of Ciba to further optimize our business.”

The German group is taking over the Swiss specialty chemicals company in a deal that values Ciba at around €3.8 billion. BASF said on November 12 that it sought through the purchase to boost activities in niche markets such as coverings, water treatment and products used in paper manufacturing. On Wednesday it explained that the production processes that would be affected by the latest measures include “ammonia, styrene and polyamide, which manufacture precursors for engineering plastics, coatings and fibres.”

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WORKING IN GERMANY

Which Bavaria-based companies regularly hire English speakers?

Bavaria is no doubt a beautiful state with a strong economy, but can be a hard place for non-German speakers to integrate. The Local takes a look at job opportunities in Germany’s southeastern 'Free State.'

Published: 7 February 2024 10:54 CET
Updated: 10 February 2024 08:20 CET
Which Bavaria-based companies regularly hire English speakers?

Munich ranks third in German cities with the highest total GDP, behind Berlin and Hamburg, but in terms of GDP per capita, it’s higher than both of them.

It also consistently ranks high, often highest, in terms of average household income.

As of 2023, nine of the 40 companies listed on DAX, Germany’s stock index, were based in Bavaria. Seven of those are based specifically in Munich.

While Frankfurt is commonly known to be Germany’s business capital, Munich can claim the title of Germany’s insurance capital, which is saying something, as Germany is home to some of the largest insurance firms in the world, like Allianz.

Beyond the state’s capital city, a number of international companies are based elsewhere in Bavaria, particularly in the Franken region, near Nuremberg.

Which companies actively hire English speakers?

Bavaria, and Munich in particular, is home to a number of companies at the forefront of international business. But the state is known for its traditional, sometimes conservative, culture, which affects its business culture as well.

Whereas companies embracing English as their primary business language are easy to find in Berlin, the practice is less common in the south. That said, there are some notable exceptions. 

Sportswear giants, Adidas and Puma, both have their headquarters near Nuremberg in Herzogenaurach, and regularly recruit English speaking international talent.

“As an international company, our teams reflect the rich diversity of our consumers and communities,” Jon Greenhalgh, Senior Manager Media Relations for Adidas told The Local. “Fostering a culture of inclusion where we value and leverage differences, ensures that we can authentically engage with our employees and truly connect with our consumers.”

He added that around 40 per cent of Adidas’ Germany-based employees are foreign nationals, from over 100 different countries.

Siemens and BMW rank among Bavaria’s top employers, and are also known to hire their fair share of foreigners.

“In Germany, we recently had around 2,000 open positions,” Konstanze Somborn told The Local on behalf of Siemens AG.

He added that Siemens operates in 190 countries. “That is why we value international teams very much…English as a common language is very usual.”

READ ALSO: ‘Which German companies want to hire foreigners?’

Similarly, BMW hires workers from a variety of backgrounds. 

“Every year, we hire lots of internationals and welcome them to the BMW Group,” Dr. Hans-Peter Ketterl, a press spokesman for BMW Group told The Local. 

But not all of these positions are available to non-German speakers.

Ketterl added that BMW’s working language is German in the country, even though, “English is an indispensable entry requirement as the second corporate language in many areas of the company.”

Check job boards and follow best practices

If it’s your first time applying for jobs in Germany, make sure to change your resume to the German format, even for English positions.

While Germany is home to its own job boards, like Xing, LinkedIn is probably the best place to start. In addition to searching for positions based in your preferred location, you can check relevant groups, like Munich Startups, to broaden your horizons.

The English Jobs in Germany website is also a good resource to start with. 

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