DPA
Paint inspection at Porsche: With a sales share of just under 20 percent, car manufacturers are one of BASF’s most important customers
The flagging automobile industry makes the German chemical giant BASF Show stock market chart to accomplish. In the Coatings division, up to 200 jobs will be cut at the Münster site by the end of 2021, as the chemical company announced on Thursday. This is to be achieved through natural fluctuation and a voluntary redundancy program. The move is part of a global program to improve the competitiveness of Coatings, which manufactures automotive and automotive refinish coatings, and architectural paints, among others.
In Münster is the worldwide headquarters of the division. In total, 2400 of the world’s 11,000 coating employees are employed there. 2018 sat BASF In the area around 3.86 billion euros around, that is a good six percent of total revenue.
With a sales share of just under 20 percent, the automotive industry is BASF’s largest customer group. In fact, the company had expected a slight recovery in the auto industry this year, after a slump in demand from BASF’s auto industry customers over the past year.
Demand from carmakers has weakened further
After all, demand from the auto industry had also weakened in the first quarter. In its forecast for the current year, however, BASF is also counting on a recovery in this important customer group. So far, BASF expects a slight increase in sales of up to five percent for 2019. Adjusted operating profit (EBIT) is expected to increase by one to ten percent, with the lower end of the range being considered more realistic.
“We are currently making no adjustments to our assumptions and monitoring the current development and its impact on BASF,” said a spokesman. Nonetheless, BASF shares were one of the largest losers in the Dax with a minus of around 0.8 percent.
The German carmakers currently have little to celebrate after years of record breaking news. As soon as the companies that are so important to the German economy have to invest billions in electric drives, battery technology and networking in their cars, reliable markets will break away for a long time.
Volkswagen Show stock market chart and Daimler Show stock market chart had earlier this week for their core brands VW and Mercedes-Benz on Wednesday further declines in car sales reported around the globe. Experts are worried that car production will fall dramatically this year. Only BMW recorded a slight increase in sales over the year,
In China, formerly a growth guarantor, after more than 20 years of boom there has been dreariness for twelve months now. The car buyers are still sensitive to the tariff disputes between the US and Beijing, and also the economy in the Middle Kingdom is not growing as fast as it used to.
la / reuters