We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
BASF (BASFY) to Stop Glufosinate-Ammonium Production at 2 Sites
Read MoreHide Full Article
BASF SE (BASFY - Free Report) intends to end production of the active ingredient glufosinate-ammonium (GA) at its Knapsack and Frankfurt locations in Germany by the end of 2024, owing to economic considerations. The GA formulation in Frankfurt will conclude in 2025. Following that, both production facilities will be shut down. Glufosinate-ammonium remains an important part of BASF's global herbicide portfolio.
BASF's GA production is being adversely impacted by increased competition from generic manufacturers, alternative technologies and high energy and raw material costs. Despite cost reductions at both production locations, BASF's volume and profitability growth is insufficient. As a result, BASF is revamping its production network and will eventually source the active ingredient from third-party vendors. This ensures the company's long-term profitability and competitiveness in the GA market.
All jobs will be preserved until the end of 2025, following which their numbers will be gradually reduced in consultation with employee representatives. The company will work closely with its employees to help them discover future career options.
The company continues to be committed to providing its customers with high-quality GA solutions. At the same time, the company will maintain its focus on developing next-generation GA products that deliver the same results with considerably lower application rates, helping farmers throughout the Americas and Asia.
Shares of BASFY have lost 5.2% over the past year compared with an 13.5% decline of its industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
BASF currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , Eldorado Gold Corporation (EGO - Free Report) and Kronos Worldwide, Inc. (KRO - Free Report) .
Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 15.1%. The company's shares have soared 92.7% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Eldorado’s current-year earnings is pegged at $1.09 per share, indicating a year-over-year rise of 91.2%. TEGO, a Zacks Rank #1 stock, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 430.7%. The company's shares have rallied roughly 56.2% in the past year.
Kronos Worldwide currently carries a Zacks Rank #1. KRO has a projected earnings growth rate of 297.7% for the current year. The company’s shares have rallied around 37% in the past year.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
BASF (BASFY) to Stop Glufosinate-Ammonium Production at 2 Sites
BASF SE (BASFY - Free Report) intends to end production of the active ingredient glufosinate-ammonium (GA) at its Knapsack and Frankfurt locations in Germany by the end of 2024, owing to economic considerations. The GA formulation in Frankfurt will conclude in 2025. Following that, both production facilities will be shut down. Glufosinate-ammonium remains an important part of BASF's global herbicide portfolio.
BASF's GA production is being adversely impacted by increased competition from generic manufacturers, alternative technologies and high energy and raw material costs. Despite cost reductions at both production locations, BASF's volume and profitability growth is insufficient. As a result, BASF is revamping its production network and will eventually source the active ingredient from third-party vendors. This ensures the company's long-term profitability and competitiveness in the GA market.
All jobs will be preserved until the end of 2025, following which their numbers will be gradually reduced in consultation with employee representatives. The company will work closely with its employees to help them discover future career options.
The company continues to be committed to providing its customers with high-quality GA solutions. At the same time, the company will maintain its focus on developing next-generation GA products that deliver the same results with considerably lower application rates, helping farmers throughout the Americas and Asia.
Shares of BASFY have lost 5.2% over the past year compared with an 13.5% decline of its industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
BASF currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , Eldorado Gold Corporation (EGO - Free Report) and Kronos Worldwide, Inc. (KRO - Free Report) .
Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 15.1%. The company's shares have soared 92.7% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Eldorado’s current-year earnings is pegged at $1.09 per share, indicating a year-over-year rise of 91.2%. TEGO, a Zacks Rank #1 stock, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 430.7%. The company's shares have rallied roughly 56.2% in the past year.
Kronos Worldwide currently carries a Zacks Rank #1. KRO has a projected earnings growth rate of 297.7% for the current year. The company’s shares have rallied around 37% in the past year.