OREANDA-NEWS. At the telephone conference, the company gave an update on the "We create chemistry" strategy and the related financial targets for 2015, which were originally published in 2011.

From today's point of view, BASF will not achieve its ambitious financial targets for 2015 (sales: EUR 80 billion; EBITDA: EUR 14 billion). The growth rates for gross domestic product, industry and chemical production for 2010 to 2015 are lower than originally expected:
* BASF now expects the average annual growth of global gross domestic product to be about 0.8 percentage points lower (prior assumption: 3.4% p.a., current assumption: 2.6% p.a.).
* Growth of industrial production is now assumed to be 3.4% p.a., versus a previous assumption of 4.6% p.a.
* The company now assumes the growth of chemical production to be 4.0% p.a. instead of 4.9% p.a. - still growing well above GDP and industrial production.

Bock: "The reasons for this weak global economic development are obvious: reduced growth dynamics of emerging markets and a delayed recovery in the European economy." In addition, there has been higher than expected margin pressure for some basic products and partially in the Performance Products segment. This is why BASF has initiated a restructuring program in this segment, which will contribute about EUR 500 million to earnings from 2017 onwards.

For 2015, BASF now expects sales and EBITDA to be in line with market expectations. For EBITDA, they are between EUR 10 billion and EUR 12 billion. As usual, the company will provide an outlook for 2015 at its Annual Press Conference on February 27, 2015, and give an update on its long-term targets.

Bock: "With regard to our strategic direction, we are on track. Even in this somewhat more difficult environment, we will continue to grow profitably."

The operational excellence program STEP is ahead of schedule. "By the end of 2015, we now aim to achieve improvements of EUR 1.3 billion, EUR 300 million more than initially planned," said Bock.