BASF Announces Cost-Cutting Program

BASF recently revealed plans to implement a new cost-cutting program at its Ludwigshafen site, anticipating further job cuts as a result. Despite challenges faced in the previous year, the German chemical company remains focused on optimizing operations and reducing costs.

Goal to Cut Costs by 1 Billion Euros Annually

In addition to the cost-cutting initiative launched in 2022, BASF aims to achieve additional cost savings of 1 billion euros ($1.08 billion) per year by the end of 2026 in Ludwigshafen. This strategic move is expected to streamline operations and enhance efficiency within the company.

Focus on Economic Outlook and Dividend Proposal

Acknowledging the economic challenges experienced in 2023, BASF foresees similar conditions persisting into 2024. Despite this, the company plans to propose a flat dividend of EUR3.40 per share for 2023, demonstrating stability and commitment to shareholders.

Financial Projections for 2024

BASF has set ambitious targets for 2024, with a focus on achieving earnings before interest, taxes, depreciation, and amortization (EBITDA) between EUR8.0 billion and EUR8.6 billion. The company also anticipates free cash flow in the range of EUR0.1 billion to EUR0.6 billion, primarily due to increased capital expenditure.

Confirmed Results and Recovery

After facing a net loss in 2022, BASF reported a net profit of EUR225 million for the year, underscoring a significant turnaround. Despite a decrease in sales by 21% to EUR87.33 billion, the company remains optimistic about its future prospects.

As BASF continues to navigate market challenges and implement strategic initiatives, the company remains committed to sustainable growth and operational excellence.