SHARE
COPY LINK

EARNINGS

BASF’s profits fall amid rocky recovery

German chemical giant BASF reported on Thursday a sharp drop in third quarter net profit, but said it had begun to gain ground in a recovery that it warned would be slow and uneven.

BASF's profits fall amid rocky recovery
Photo: DPA

The world’s largest chemical company said net profit plunged 68.7 percent from the same period a year earlier to €237 million owing to costs stemming from the integration of the Swiss company Ciba.

Sales fell 18.9 percent to €12.8 billion, while core earnings before interest and tax (EBIT) were down 35.7 percent at €971 million, a statement said. EBIT before special items fell 20.4 percent to €1.25 billion.

Sales nonetheless gained two percent from the second quarter of 2009 and EBIT was up by nine percent from that three-month period, the group said.

“Overall, there is much to suggest that the worst is behind us. After a steep plunge, we are now climbing gradually out of the trough,” BASF chairman Jürgen Hambrecht said in the statement.

“The recovery will be slow and uneven,” he added.

The company said customers appeared to be replenishing their stocks but that they were “still placing smaller orders at increasingly short notice, especially closer to the end of the year.”

Meanwhile, BASF continued with the integration of Ciba, a specialty chemicals company that the German group bought last year, saying it “is making rapid progress and faster than planned in some areas.”

That also meant, however, “that a larger proportion of the related costs will be incurred in 2009,” and BASF expected them to amount to more than €800 million.

Around 3,800 jobs would also be eliminated, for the most part by the end of 2010, it said. As of September 30, BASF employed 105,850 workers, it added.

Looking ahead, the group said it “anticipates a significant decline in sales and earnings for the full year 2009.”

The higher costs of integrating Ciba meant that “BASF is therefore unlikely to reach its goal of earning its cost of capital this year,” Hambrecht said.

A breakdown of the figures showed that sales fell in both the key chemical and plastics units but that earnings were higher than in the third quarter of 2008 owing to the company’s “value over volume” pricing strategy.

BASF shares plunged 4.0 percent to €35.52 in early trading on the Frankfurt stock exchange while the DAX index of leading shares was 0.46 percent lower overall.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.
For members

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.'

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. 

SHOW COMMENTS