Tag Archives | BASF

recession logo right.jpg

No sign of any upturn

This week’s company results have been keenly awaited, as the industry seeks to form a view on what happens next to demand and profits. My new IeC colleague Paul Satchell reviews them, from the point of view of a highly-experienced financial analyst, in his ‘Chemicals Viewpoint’. But the blog thought it would also be interesting […]

Continue Reading
Prod jun09.jpg

After destocking, chemical volumes still down 15-20%

The great wave of destocking is finally coming to an end. And it is clear that underlying global demand is well below previous “normal” levels. The evidence for this can be seen in the above chart, based on American Chemistry Council data, which shows global chemical production down 12.8% in April versus 2008. And as […]

Continue Reading
BASF right.jpg

BASF sees “weak demand”, traders see recovery

BASF, the world’s largest chemical company, said today that they see “weak demand for chemical products” continuing through 2009. In response, plants and sites “will be closed or sold where necessary”. These are clear statements about the outlook, backed up by commitments to take action. Yet volumes and prices in financial markets are rising, as […]

Continue Reading
Dineen.jpg

Difficult times call for tough decisions

Downturns are difficult times. There is always the hope that markets might improve, and this can delay the implementation of tough decisions on plant closures. Nobody wants to shut down, and then see a competitor benefit from an improving market. But if markets do stay depressed, then precious cash is being wasted whilst plants operate […]

Continue Reading
BASF right.jpg

BASF – the German oil and gas company

BASF’s reported results for 2008 show that its profits are increasingly coming from the oil and gas sector. Geographically, it is becoming similarly dependent on its German operations. Agricultural and performance products put in a strong performance during the year, with their combined EBIT rising €300m to €1.5bn. But the chemicals, plastics and functional businesses, […]

Continue Reading
lyondellleft.jpg

$26bn LyondellBasell restructuring hits legal minefield

Vita’s restructuring was relatively simple from a legal point of view, as it just involved European rules. But Lyondell Chemical’s bankruptcy filing last month under the US Chapter 11 process seems to have thrown up some very complex legal issues. This is because it involves two different sets of bond-holders – those who bought the […]

Continue Reading
LBI2.jpg

LyondellBasell files for bankruptcy

LyondellBasell has become the largest-ever chemical company bankruptcy, just 12 months after its formation. Its US operations (Lyondell Chemical Co), and Basell Germany Holdings GmbH, filed for Chapter 11 protection in New York tonight. The company expects its other non-US operating entities to continue to function independently of the Chapter 11 process. The blog is […]

Continue Reading

The CEO’s survival guide

The past few weeks have not been good for the chemical industry, with 4 major companies suffering significant problems: BASF warned that “customer demand in key markets has declined significantly” since October, and have temporarily shutdown 80 plants worldwide, whilst reducing production at another 100 plants. Dow suffered a major reverse with the last minute […]

Continue Reading
alphabet left.jpg

Is this a V, U, W, or L-shaped recession?

There is now general agreement that we are in a global recession. The World Bank’s new ‘Global Economic Prospects’ report expects global GDP growth of only 2.5% this year, and just 0.9% growth for 2009. This is well below the 3% level that signals recession. And the Bank also forecasts that world trade will contract […]

Continue Reading
Sale.jpg

The end of the beginning

Last week’s BASF announcement marked the end of Phase One of the downturn. This began over a year ago, with the first signs of financial crisis. Now, we will move into Phase Two – a long, multi-year recession, which will probably include several bear-market rallies. The end of this “beginning” Phase is seeing a disastrous […]

Continue Reading