BASF to Cut Jobs, Plans Further Cost-Saving Measures at German Production Site

By Pierre Bertrand

BASF said that it will cut jobs as it plans to launch another cost-cutting program targeting its Ludwigshafen site, and confirmed its year-end results which, as previously disclosed, were hampered by impairments and lower margins.

The German chemical company said that in addition to the cost-cutting it launched in 2022, it intends to launch an additional program to cut costs in Ludwigshafen by a further 1 billion euros ($1.08 billion) annually by the end of 2026.

"The program will therefore also unfortunately lead to further job cuts," said Chairman Martin Brudermueller.

BASF said that it was still working out the details and that employee representatives would be closely involved.

The company added that it expects the economic weakness seen in 2023 to continue in 2024.

The company said it would propose a flat dividend of EUR3.40 a share for 2023.

BASF is targeting earnings before interest, taxes, depreciation and amortization before special items between EUR8.0 billion and EUR8.6 billion in 2024.

Its free cash flow is expected between EUR0.1 billion and EUR0.6 billion due to temporarily higher capital expenditure.

As disclosed last month, BASF confirmed net profit for the year at EUR225 million, compared with a EUR627 million net loss in 2022, on sales that fell 21% to EUR68.90 billion.

Write to Pierre Bertrand at pierre.bertrand@wsj.com

Corrections & Amplifications

This article was corrected at 1005 GMT. The original incorrectly said 2023 sales fell 21 percent to EUR87.33 billion. Sales fell EUR68.90 billion.

(END) Dow Jones Newswires

February 23, 2024 01:26 ET (06:26 GMT)

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