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Chemicals giant BASF warns of dire 2009

The world's biggest chemicals company, BASF, saw business slide in the last quarter of 2008 due to the global economic slump and warned Thursday 2009 could be be equally grim.

Published: 26 February 2009 13:21 CET
Chemicals giant BASF warns of dire 2009
Photo: DPA

BASF posted a net loss of €313 million ($398 million) in the final three months of last year, compared with a profit of €793 million in the same period of 2007. The company said in a statement that the “significant decline in the global economy impaired fourth-quarter earnings.” For all of 2008, net profit fell by 28.4 percent to €2.9 billion.

The results came in below analysts forecasts, which had foreseen a quarterly loss of €5.4 million and an annual profit of €3.2 billion, according to a poll by Dow Jones Newswires.

In 2009, BASF expected sales to fall further and warned of “an even greater decline in income from operations,” owing in part to costs connnected with the integration of the Swiss chemical company Ciba. The German group said it would propose an unchanged dividend of €1.95 per share for 2008.

Despite the grim news, the price of those shares jumped by 6.31 percent to €22.40 in morning trading on the Frankfurt stock exchange, while the DAX index of German blue chips was 1.85 percent higher overall.

To deal with the downturn, BASF has already closed several plants, and the statement said that more would shut down this year in Asia, Europe and the United States, with the loss “of at least 1,500 jobs.”

One of the group’s main activities, supplying the automobile sector, has been hit hard by a sharp decline of markets worldwide. That trend is expected to continue this year, while the fall in oil prices also weighed on BASF’s revenues.

Chairman Jürgen Hambrecht painted a bleak picture for the current year, saying it would present “unprecedented challenges.”

“Following the dramatic drop in our global business in the fourth quarter of 2008, demand for chemical products has not picked up since the start of 2009,” the BASF boss acknowledged.

“A reversal of the trend is not yet in sight. On the contrary: The situation in our sales markets is worsening, and inventory levels in the value chains are still too high. As a result, the chemical industry is continuing to shrink,” he said.

Like many other companies, BASF declined to give a detailed outlook for 2009 earnings.

It nonetheless expected to maintain its share dividend constant and to pursue spending on research and development “at the same level as in previous years in order to ensure our long-term success,” Hambrecht said. He termed those goals “extremely ambitious in the current economic climate.”

BASF employs 95,000 workers and is present in the full range of chemical activities, including plastics and agricultural products, as well as in the exploration and sale of oil and gas.

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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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