BASF: lowers full-year profit outlook
(CercleFinance.com) - Germany's BASF lowered its full-year profit outlook on Tuesday, citing significantly weaker-than-expected industrial production.
The chemical company, whose products range from agriculture to surface technologies, said growth in industrial production of about 1.5% in the first half of 2019 was "much slower than expected”.
The downturn in the global automotive industry was particularly strong, BASF said, with production down by around 6% in the first half of 2019.
"The conflicts between the United States and its trading partners, particularly China, have not eased”, the group also pointed out.
As a result, EBIT before special items for the second quarter was "considerably below expectations”, it said in a statement.
In terms of outlook for 2019, BASF now expects EBIT before special items to be up to 30% below prior-year level.
The shares of BASF were down 1% in Frankfurt on Tuesday.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The chemical company, whose products range from agriculture to surface technologies, said growth in industrial production of about 1.5% in the first half of 2019 was "much slower than expected”.
The downturn in the global automotive industry was particularly strong, BASF said, with production down by around 6% in the first half of 2019.
"The conflicts between the United States and its trading partners, particularly China, have not eased”, the group also pointed out.
As a result, EBIT before special items for the second quarter was "considerably below expectations”, it said in a statement.
In terms of outlook for 2019, BASF now expects EBIT before special items to be up to 30% below prior-year level.
The shares of BASF were down 1% in Frankfurt on Tuesday.
Copyright (c) 2019 CercleFinance.com. All rights reserved.