BASF Targets Earnings Boost With Strategic Shakeup
20 November 2018 - 7:10PM
Dow Jones News
By Nathan Allen
BASF SE (BAS.XE) is aiming to increase profitability by
sharpening its portfolio and implementing a series of measures
related to production, logistics, and R&D, the chemicals group
said Tuesday as it released a new strategic plan.
The German company said it will run a program between 2019 and
2021 that should deliver 2 billion euros ($2.29 billion) a year in
additional earnings from the end of 2021.
This will allow BASF to increase earnings before interest,
taxes, depreciation and amortization before special items by
between 3% and 5% a year, the company said.
Streamlining the current divisional structure to include six
major segments will also help the group deliver its targets, BASF
said.
"We will sharpen our portfolio and focus our capital allocation
more towards growing business areas," said Chief Executive Martin
Brudermuller, who took up the position in May.
BASF emphasized the importance of Asia, and particularly China,
to its growth strategy. The company expects China's market share in
global chemicals to increase to 50% by 2030 compared with around
40% currently.
Write to Nathan Allen at nathan.allen@dowjones.com
(END) Dow Jones Newswires
November 20, 2018 02:55 ET (07:55 GMT)
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