U. J. Alexander BASF's (OTCQX:BFFAF)(OTCQX:BASFY) 2023 annual report was characterized by the slogan 'Rethinking chemistry', reflecting the need to evolve and secure a license to operate in a world that puts more emphasis on emissions, a subject previously covered. This rethinking needs to be done in a challenging macro-environment which affects the bottom line of the company. While the company will be able to maintain the dividend, growth is still a few years out. In addition, material stock price appr ...

BASF SE (BASFY) will attend CHINAPLAS 2024, a landmark event in the plastic and rubber sectors, to showcase its latest additive products, which considerably improve the sustainability of diverse plastic applications. These solutions assist customers in the plastics industry in meeting their sustainability goals by boosting durability, lowering emissions and improving the performance and quality of recycled plastics.CHINAPLAS 2024 provides an excellent platform to invite BASF's customers to the company's pla ...

BASF SE (BASFY) has launched AdBlue ZeroPCF as the first AdBlue product with a reduced carbon footprint. The company is now the first manufacturer to offer AdBlue in a ZeroPCF form, which has a certified CO2 footprint (product carbon footprint or PCF) of less than 0.05 kg per kilogram of AdBlue. The amount includes the CO2 emissions associated with the product during production up to the site gate. The market standard for fossil products is at least 0.4 kg in Europe.BASF's AdBlue ZeroPCF reduces PCF through ...

BASF SE's (BASFY) Aroma Ingredients brand, Isobionics, is introducing a new natural product to the flavor market. Isobionics Natural beta-Caryophyllene 80 is the company's most recent addition to the Isobionics portfolio, demonstrating its commitment to creating natural flavors based on client demand. Isobionics Natural beta-Caryophyllene 80 will be showcased for the first time at the FlavourTalk Raw Materials Exhibition 2024, which will be held on Mar 20 at the Millennium Gloucester Hotel Conference Center ...

BASF SE’s (BASFY) Monomers division has achieved a significant milestone in its sustainability journey, having achieved global ISCC PLUS and REDcert certifications for all production sites across all regions. With the certification of sites across the globe, BASF can now provide American customers with certified, sustainable Isocyanate solutions manufactured in the United States, ensuring a perfect fit for their product mix.REDcert and ISCC PLUS are sustainability certifications provided for the use of sust ...

BASF SE (BASFY) has bolstered its partnership with OQEMA, one of Europe's leading chemical distributors, for BASF's standard amines portfolio, excluding ethanolamines in the U.K. and Ireland, effective Jan 1, 2024.The companies, which have had a successful partnership in Germany and Eastern Europe for more than two decades, will now collaborate in the U.K., combining OQEMA's extensive distribution and sales network and in-depth local market knowledge with BASF's ability to deliver high-quality, competitivel ...

Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today:BASF SE (BASFY) is a chemical company. The Zacks Consensus Estimate for its current year earnings has been revised 20.8% downward over the last 60 days.Blackstone Mortgage Trust, Inc. (BXMT) is a real estate finance company. The Zacks Consensus Estimate for its current year earnings has been revised 11.6% downward over the last 60 days.Covestro AG (COVTY) is a polymer solutions provider.The Zacks Consensus Estimate for its current yea ...

BASF SE’s (BASFY) Coatings division and INEOS Automotive have forged a comprehensive agreement to advance global automotive refinish body and paint development. The collaboration marks a long-term strategic alliance aimed at surpassing industry benchmarks in vehicle body repair and paint refinish. Together, the partners pledge to deliver sustainable refinish solutions, expertise and cutting-edge digital color-matching solutions along with training initiatives.INEOS Automotive expressed great enthusiasm abou ...

Growth rates Global GDP 2.6 1 Source: BASF, Q4 2023 partly based on estimates. Data sources: S&P Global, NBS China, Feri, Fed, Eurostat, METI, ONS. All data subject to statistical revision. Growth rates for regional aggregates might differ from official data releases due to different country coverage and weights. China 2023 growth rate adjusted based on BASF proxy calculation. China production index is 9.6% for FY 2023. 3 February 23, 2024 | BASF FY 2023 Analyst Conference Call excluding precious metals, vo ...

Financial Data and Key Metrics - Group sales declined by 18% to around €16 billion in Q4 2023, mainly due to lower prices and currency headwinds [32] - EBIT before special items declined by €81 million to €292 million in Q4 2023 [32] - EBITDA before special items decreased by 29% to €7.7 billion for the full year 2023 [50] - Net income improved by €852 million to €225 million in 2023, mainly due to non-cash impairments in the prior year [51] - Free cash flow decreased by €680 million to €2.7 billion in 2023 [52] Business Line Data and Key Metrics - Industrial Solutions, Nutrition & Care, Surface Technologies, and Materials segments showed higher earnings in Q4 2023, partially offsetting declines in Agricultural Solutions, Chemicals, and other segments [32] - The Agricultural Solutions segment saw impairments related to production facilities in Europe [63] - The Materials segment recognized impairments related to an intangible asset acquired from Solvay [63] Market Data and Key Metrics - Global chemical production grew by 1.7% in 2023, driven by growth in China, while other regions recorded declines [29] - Chemical production in China increased significantly in 2023, driven by recovering domestic demand and exports, but with low sales prices [29] - Europe and Asia (excluding China) saw substantial declines in chemical production due to high inflation and structurally higher natural gas prices [30] - North America experienced a slight decline in chemical production due to weak domestic demand [31] Company Strategy and Industry Competition - The company is focusing on cost reductions and efficiency improvements, particularly at the Ludwigshafen site, aiming to reduce costs by €1 billion annually by the end of 2026 [39][40] - BASF is adapting production capacities to market needs and trimming variable costs by redesigning processes [40] - The company is committed to transforming Ludwigshafen into a leading low CO2 emission chemical production site [38] - BASF is systematically driving forward its business in dynamically growing regions with attractive investment conditions [38] Management Commentary on Operating Environment and Future Outlook - The global economic momentum from 2023 is expected to continue in 2024, with persistently high interest rates dampening growth in the US and Europe [75] - Recovery in China remains uncertain, particularly in the real estate sector and labor market [75] - The geopolitical situation remains critical, with ongoing wars in Ukraine and the Middle East, and tensions between the US and China [76] - BASF expects global chemical production to grow by 2.7% in 2024, driven primarily by growth in the Chinese chemical industry [76] Other Important Information - The company achieved an annual cost reduction run-rate of around €0.6 billion by the end of 2023, with one-time costs of around €0.4 billion [35] - BASF plans capital expenditures of €19.5 billion between 2024 and 2027, with €6.8 billion allocated to growth projects [59] - The company is investing around €900 million in its transformation towards net zero between 2024 and 2027 [60] Q&A Session Summary Question: Update on China operations and state guarantees for lost Russian assets - China's dynamic growth is not as strong as expected, with the real estate sector still facing difficulties. Slight volume growth in Q4 2023 continued into early 2024, but January data is unreliable due to Chinese New Year [8] - Wintershall Dea is pursuing claims for state guarantees related to lost Russian assets, but no details can be disclosed. Any recovery from these claims would be a value upside not reflected in financial statements [11] Question: Gas price assumptions and hedging - BASF does not provide guidance on gas prices, but notes that industrial productivity in Europe was low, contributing to stable gas prices. Upside risks for gas prices remain [10] - The company is well-positioned in the agricultural business, with a strong seed business and no specific concerns in the ag sector [10] Question: Free cash flow guidance and efficiency program costs - The €1.6 billion one-off gain from Wintershall Dea is not included in the free cash flow guidance [15] - Costs related to the new efficiency program in Ludwigshafen are not part of the guidance and are expected to impact free cash flow in 2025 [15] Question: Dicamba sales following US ruling - Dicamba over-the-top application is not possible following a US ruling, and BASF is observing any further rulings [16] Question: Automotive demand and agrochemicals inventory - Global automotive production is expected to be flat in 2024, with China's automotive industry focusing on exports [88] - The agricultural business is expected to have a strong year, but distributors are holding back on inventory due to higher financing costs, leading to a shift from Q1 to Q2 [89] Question: Restarting the smaller cracker at Ludwigshafen - The cracker at Ludwigshafen is running according to demand, with flexibility to adjust to market conditions [95] Question: Radical approach to German footprint - BASF is serious about reducing costs and improving competitiveness in Germany, with significant job cuts expected over the coming years [97] - The company is focusing on reducing fixed costs, improving purchasing efficiency, and adapting production facilities to market realities [97] Question: Q1 earnings and integrated approach - Q1 2024 is expected to have a solid start, but may be lower than Q1 2023 due to the Agricultural Solutions business [118] - BASF remains committed to its integrated approach, with differentiated steering for less integrated units and economies of scale for core services [107] Question: Nutrition & Care business recovery - The Nutrition & Care business is expected to recover gradually, with volume growth in the aroma business and pricing upside for vitamins [110] Question: Risks to 2024 guidance - BASF's guidance for 2024 is ambitious but realistic, with risks including margin pressure and competition from China [114] Question: Exports to China and Q1 performance - Exports to China from Germany are not significant, as BASF has increased its capacities in China [119] - Q1 2024 may be lower than Q1 2023 due to the Agricultural Solutions business, but the rest of the year is expected to show growth [118] Question: CapEx trimming and battery materials - BASF is trimming CapEx, with the majority of investments focused on the China project and slowing down battery materials investments [123]