BASF: Global Recession In 2009
4 November 2008 Despite a strong 13% growth for third quarter 2008 and record sales of crop protection products, Germany-based BASF said the next 12 months will be a huge challenge. Despite the company’s Agricultural Solutions division growing 11%, and overall company sales of US$15.8 billion, BASF believes next year will be one of its toughest yet with the global economy on the brink of a recession.
Dr. Jürgen Hambrecht, chairman of the board of executive directors said: “The decline in demand in important markets, stockpiling by our customers and the fall in oil prices are all signs of a recessionary trend that is likely to sharpen in 2009. The months ahead are likely to bring many extraordinary challenges for our business and hardly any positive impulses.”
Hambrecht said it will be difficult to predict what will happen in 2009 because of the uncertainty in the global economy; however, he said: “We have therefore revised our assumptions and are now reckoning with global economic growth in 2008 of below 2.7% and chemical production growth of below 2%.”
He also called for help from the EU to avoid additional costs of complying with environmental targets, and claimed the emissions trading standard would make European industry less competitive, says Farmers Guardian.
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