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	• Table of Contents • cen-chemjobs.org • Today's Headlines • Editor's Page • Business • Government & Policy • Science & Technology • ACS News • Calendars • Books • Career & Employment • Special Reports • Nanotechnology • What's That Stuff?          Back Issues 2003 2002 2001 2000 1999 1998  Safety Letters  Chemcyclopedia ACS Members can sign up to receive C&EN e-mail newsletter.   Join ACS			December 15, 2003 Volume 81, Number 50 CENEAR 81 50 p. 7 ISSN 0009-2347 BUSINESS CHEMISTRY GETS A NEW CHAMPION New BASF logo emphasizes 'chemical company' identity PATRICIA SHORT German chemical giant BASF is anything but flashy. But last week, the company took measured steps to add vivid color to its logo--last modified in 1985--while at the same time adopting tougher internal yardsticks for its own performance. The colorful new logo also goes against the current general reluctance of companies to be associated with chemicals. BASF says it is "The Chemical Company"--and proud of it, observed Chairman Jürgen Hambrecht at a press conference last week to introduce the new logo. During the years 1981–2000, the chemical industry grew at a faster rate than did world gross domestic product, Hambrecht says, but "these good times are over. According to our prognosis for 2001 through 2015, we expect growth to be lower than that of world GDP." Companies will need to take market share away from others if they don't want to fall behind, he added. Hambrecht BASF PHOTO To ensure profitable growth, BASF will adopt, as a companywide performance indicator, earnings before interest and taxes--very roughly, operating profits--after taking into account its cost of capital. In other words, all the company's businesses will be expected to cover the cost of capital, currently 10% on operational assets, and make a premium above that. That is a challenging target, Hambrecht noted, given that over the past three years, "nobody in the chemical industry has even covered their cost of capital." One result: After a period of heavy investment, BASF's future capital expenditures will be "considerably lower" than the rate of depreciation of its assets. Growth will still be possible both for BASF and for the rest of the industry, Hambrecht said, because global capacity utilization is only about 80%. That leaves a fair amount of unused capacity to cover future growth. Top Chemical & Engineering News Copyright © 2003 American Chemical Society			Related Site BASF E-mail this article to a friend Print this article E-mail the editor
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