BASF: launches new program to improve earnings
(CercleFinance.com) - BASF is to increase its annual earnings as part of a new program focusing on digitalization and automation, the German chemicals group said at its capital market days on Tuesday.
The Ludwigshafen-based group is initiating a new "excellence" program, which will run from 2019 until 2021, targeting annual earnings contributions of 2 billion euros as from the end of 2021, it said.
The program will include measures focused on production, logistics, research and development, as well as digitalization and automation activities and organizational development, BASF said.
BASF also wants to further increase profitability and aims to increase EBITDA before special items by 3% to 5% per year.
Finally, the company plans to increase its dividend per share every year, supported by a "strong" free cash flow, it said.
The initial market reaction was not so positive, with BASF shares down 2.5% at 67.6 euros in morning trading in Frankfurt.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The Ludwigshafen-based group is initiating a new "excellence" program, which will run from 2019 until 2021, targeting annual earnings contributions of 2 billion euros as from the end of 2021, it said.
The program will include measures focused on production, logistics, research and development, as well as digitalization and automation activities and organizational development, BASF said.
BASF also wants to further increase profitability and aims to increase EBITDA before special items by 3% to 5% per year.
Finally, the company plans to increase its dividend per share every year, supported by a "strong" free cash flow, it said.
The initial market reaction was not so positive, with BASF shares down 2.5% at 67.6 euros in morning trading in Frankfurt.
Copyright (c) 2018 CercleFinance.com. All rights reserved.