26 Feb 2009

BASF pay a dividend - is there any change left in their Euro pockets?

BASF decides not to put its dividend into its own pocket!  After reporting its first quarterly loss for 7 years, 'The Chemical Company' made a commitment to keep paying a dividend, despite plant closures, job cuts etc.  This is unlike rivals such as the Dow Chemical company which cut its payout for the first time in 112 years.

Shareholders will receive EUR1.95 which is similar to pay-outs in previous years.  

Some facts - BASF will eliminate 1,500 jobs, idle factories, reduce working hours for 2,500 employees ............  the slump in chemical demand coincides with BASF's decision to buy Ciba Specialty Chemicals.  The integration of Ciba will have an additional impact on earnings.

In reality the dividend payment is a 'nice thing' but BASF, like many chemical companies has a tough year ahead.  At least BASF are better positioned than many of the other chemical companies which have not joined the essential consolidation of the European chemical industry.

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