Proposed energy tax a `slap in the face' in difficult times, warns BASF
15 Jan 2000
The world's largest chemicals group, BASF, reported third-quarter pretax profits to October up 13.7 per cent to DM4.3billion. This was achieved despite a 7.5 per cent drop in sales to DM12.6bn. Jurgen Strube, chief executive, blamed the sluggish sales on lower prices and uncompetitive exchange rates for the Deutchmark.
Disposals made during the year, as well as special charges, kept earnings buoyant but Strube warned that 1999 would be difficult for BASF, and it would not reach the target return on assets of 13 per cent.
While Strube prudently appraised the company's condition, he left no doubt about the company's feelings on the new centre-left government's plans for an energy tax, which were `a serious cause for concern' and would put a `significant burden on industry and the chemical industry in particular.'
In anticipation of the corresponding EU-wide energy tax in the coming year, Strube called for a `permanent freeing of "process energy" to be incorporated into German and European legislation.
`The proposed taxation is a slap in the face for those seeking innovative, economical and less-polluting energy generation' he said.
The company's veteran deputy chairman, Albrecht Eckell, and colourants director Hanns-Helge Stechle will retire next year after over 32 years at BASF and as a result, the number of board members will reduce permanently from ten to eight.
