Germany’s BASF announces financial results for Q3
The company’s earnings before interest taxes depreciation and amortization (EBITDA) reached €2.52 billion ($3.19 billion) compared with €2.49 billion in the same period of 2013 despite declining demand. Earnings before interest and tax (Ebit) before special items also increased 8.9% to reach €1.84 billion while the company’s sales rose 3.3% to reach €18.31 billion in the third quarter compared to the same period of 2013. An increase in the natural gas trading business was cited as the main reason behind the company’s increased sales.
On a quarterly basis, the company’s sales in the chemical segment mostly appeared at the same levels when compared to the same period of the previous year. The market conditions in Asia were tough while the company’s European sales were also down. In the third quarter, the company’s earnings in the chemicals segment increased €89 million due to higher margins to reach €616 million compared to the same period of 2013.
Meanwhile, the BASF Group has revised its expectations downward for the rest of the year and now estimates that global growth in chemical production in 2014 will be 4.0% compared to the earlier expectations calling for a growth rate of 4.4%. BASF states that it lowered its estimates for financial targets for 2015 as growth rates for gross domestic product, industry and chemical production are lower than expected.
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