(new: statements from the Annual Meeting)

MANNHEIM (dpa-AFX) - BASF CEO Martin Brudermüller has defended the world's largest chemical company's austerity measures and Asia strategy in his last appearance as Chairman of the Board of Executive Directors. These are still stormy times for the chemical industry, said the 62-year-old at the Annual Shareholders' Meeting of the Dax-listed company in Mannheim on Thursday. The chemical giant had performed solidly overall. Even in rough times, BASF is financially strong. However, the figures for the first quarter showed that margins are still under pressure.

Decline in sales and earnings in the first quarter

Due to significantly lower prices, the Group recorded a decline in sales and earnings at the start of 2024. Negative currency effects also had a negative impact. Revenue in the first three months shrank by a good twelve percent year-on-year to 17.6 billion euros. Adjusted for special items, operating earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) fell by 5.3 percent to just under 2.7 billion euros.

The bottom line for the Ludwigshafen-based Group was a profit of just under 1.4 billion euros - after almost 1.6 billion a year earlier. The chemical company confirmed its targets for 2024: BASF is aiming for earnings before interest, taxes, depreciation and amortization (EBITDA) and special items of between 8.0 and 8.6 billion euros this year. The company did not provide a forecast for sales and net profit.

Ludwigshafen to remain BASF's largest site

The outgoing manager assured that the DAX-listed company's headquarters in Ludwigshafen will remain BASF's largest site. However, as the site had recently incurred large losses and was not profitable, costs would have to be significantly reduced, more profitability achieved and jobs cut. "These are painful measures. But necessary ones."

In Ludwigshafen, additional annual costs of one billion euros are to be saved by the end of 2026. It is still unclear how many jobs will be cut in Ludwigshafen. BASF management had already announced a savings program in 2022. The aim is to reduce annual costs by a total of 1.1 billion euros by the end of 2026. This includes the reduction of around 3,300 jobs worldwide, including 700 jobs in production in Ludwigshafen, as well as the closure of several energy-intensive chemical plants, for example for ammonia.

Focus on the Asian growth market

The CEO, who will hand over the position to his successor Markus Kamieth after the shareholders' meeting, emphasized that the growth market of the coming decades will be Asia. "We don't like to hear it in Europe. But China is by far the largest and most dynamic chemical market in the world." BASF wants to open up new markets and win customers in the region.

Brudermüller emphasized that the company is fully committed to human rights and that there are no indications of human rights violations at holdings in China. The Group had recently announced that it would sell shares in its two joint ventures in Korla, China. The background to this were reports of possible human rights violations./glb/mne/stk