BASF expects lower chemical production in 2015
BASF slashed its economic growth expectations for 2015 global economic growth to 2.3% from its previous estimate of 2.4%. According to BASF, growth in global chemical production will slow to 3.5% in 2015 compared with its initial estimate of 4.2%. BASF also predicted that its own earnings and sales would see a slight decrease this week.
BASF also announced its financial results for the third quarter of this year in a press release on its official website. The company’s net profit rose 19% to €1.2 billion ($1.33 billion) from €1.01 billion in the same period of last year owing to gains from the asset swap with Gazprom while its sales declined 5% to €17.42 billion ($18.8 billion) because of weakness in the basic chemicals division.
The company’s EBIT before special items fell 10% to €1.6 billion ($1.76 billion) due to lower earnings in the paper chemicals, agricultural chemicals and oil and gas divisions. EBIT before special items in basic chemicals unit rose to €17 million ($18.7 million) on the back of strong margins in the petrochemicals unit while EBIT before special items in the performance products unit came down 15% to €319 million ($352 million) because of higher fixed costs stemming from the startup of new plants and unfavorable currency effects.
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