It is interesting when one talks to employees in BASF. Once you have been hired you apparently pretty much cannot get fired. The possibilities to promotions are also weak. This means that many of the ambitious employees with a drive leave the company and the people that remains are well... there between nine to five. It is sad to hear and it would be interesting to get statistics on what a person must do to actually get fired in Europe (ex. UK).
For the report in full please go here and for the latest summary which was the BASF annual report 2016 then please click on that link and to find out more about The Chemical Company then please visit analysis of BASF 2017.
In the last three years BASF has taken a significant drop in revenue due to divesting however last year looked pretty weak and by the look of things their new strategy is taking off. Less revenue but more profit. I like it! I only wish that IBM would at some stage actually manage to close that equation instead of having both go down year after year. Back to BASF... they are now stepping into lower volume products that sells at a higher margin. They never did this in the past. No matter how large the margin was if the product did not reach a certain volume they simply shut it down. In my book that is idiocy but hey... they are slow but they appear to get it in the end. The revenue was up by
12% which is good but even better then earnings was up by almost 50%. Well done!
Conclusion: I hope that BASF will stay on the path that they are now walking so that those profit margins and earnings can keep increasing! I increased by holding not that long ago and I will remain as a shareholder in BASF for a long time.
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