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BASF expects lower chemical production in 2015

by ChemOrbis Editorial Team - content@chemorbis.com
  • 28/10/2015 (10:07)
According to media reports, German chemical company BASF cut its 2015 outlook for chemical production, citing the weakening global economy, especially emerging markets, as the main reasons behind their downwardly revised expectations.

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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