BASF SE / Change in Forecast 19.11.2008 Release of a UK Regulatory Announcement, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- BASF reduces production worldwide Massive decline in demand in key industries Previous years earnings level will not be achieved Ludwigshafen, Germany November 19, 2008 BASF is taking measures to avoid the creation of overcapacities as a result of a massive decline in demand. The company is temporarily shutting down around 80 plants worldwide. In addition, BASF is reducing production at approximately 100 plants. This was already announced for polystyrene and caprolactam. Scheduled maintenance work is being brought forward. BASF already drew attention to the difficult economic situation at the end of October. Since then, customer demand in key markets has declined significantly. In particular, customers in the automotive industry have canceled orders at short notice. In addition, sales volumes are being negatively impacted by increased reduction of inventory by customers and a lack of credit in customer industries. In 2008, BASF does not expect to achieve the previous years excellent EBIT before special items. Dr. Jürgen Hambrecht, Chairman of the Board of Executive Directors of BASF SE explained that it was difficult to foresee how the coming year would develop and said that BASF was preparing for tough times. Worldwide, approximately 20,000 employees will be affected by the production cuts. Flexible working time arrangements will be used wherever possible. At the companys main site in Ludwigshafen, Germany, BASF SE has signed an agreement with the works council under which the measures will be implemented through the flexible use of working time arrangements such as overtime and vacation. According to current plans, the measures are expected to affect approximately 5,000 employees in Ludwigshafen. 'We are responding flexibly to market developments and are acting quickly,' explained Hambrecht. 'BASF will now focus even more closely on cost and budget discipline, and will use opportunities arising from the crisis. We will also proceed swiftly with the planned acquisition and integration of Ciba to further optimize our business.' The adjustments are primarily being carried out in units that supply the automotive, construction and textile industries. Value chains affected include ammonia, styrene and polyamide, which manufacture precursors for engineering plastics, coatings and fibers. The shutdowns will be coordinated throughout BASFs global production Verbund and will involve all six Verbund sites in Europe, Asia and North America, as well as other sites. Implementation of most of the measures has already started; reduced capacities are expected to last until January 2009 for individual plants. 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. BASF will continue to follow market developments very closely and will adjust production planning accordingly. 'We are realistic, but we are nevertheless confident when we look to the future,' said Hambrecht. 'We have made BASF more resilient in the past years. The strength of our better balanced portfolio makes itself apparent in the current difficult situation. BASF is solidly financed.' Gareth Rees Phone: +49 621 60-20732 Fax: +49 621 60-92693 gareth.rees@basf.com DGAP 19.11.2008 --------------------------------------------------------------------------- Language: English Issuer: BASF SE Carl-Bosch-Straße 38 67056 Ludwigshafen Deutschland Phone: +49 (0)621 60-0 Fax: +49 (0)621 60-4 25 25 E-mail: info.service@basf.com Internet: www.basf.com ISIN: DE0005151005, DE000A0JRFB0, Börse Dublin, Frankfurter Wertpapierbörse, , DE000A0JRFA2, Börse Dublin, Frankfurter Wertpapierbörse, , DE000A0JQF26, Börse Dublin, Frankfurter Wertpapierbörse, , DE000A0EUB86, Frankfurter Wertpapierbörse, , DE0008846718, Frankfurter Wertpapierbörse, Indices: DAX, EURO STOXX 50 Listed: Regulierter Markt in Berlin, Frankfurt (Prime Standard), Hannover, Düsseldorf, Stuttgart, München, Hamburg; Terminbörse EUREX; Foreign Exchange(s) London, SWX Category Code: IMS LSE Ticker: BFA Sequence Number: 26 Time of Receipt: Nov 19, 2008 12:41:40 End of News DGAP News-Service ---------------------------------------------------------------------------
DGAP-UK-Regulatory: BASF SE:BASF reduces production worldwide
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