BASF slashes forecast on poor November results
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BASF now expects a "considerable decrease" in earnings for 2018 based on results for November, citing weakness in its chemicals segment. Factors include declining isocyanate prices, lower cracker margins, and impact of the low water level of the Rhine River. Demand from the automotive sector also continues to decline, BASF said. "Demand from customers in China slowed significantly," BASF says. "The trade conflict between the United States and China contributed to this slowdown."
BASF expects earnings before interest and taxes (EBIT) before
special items for full-year 2018 to drop in the range of 15% to 20%
compared with the prior-year result of €7.5 billion. BASF
previously forecast a slight decline of up to 10% compared with the
"In particular, isocyanate prices fell more sharply, and steam cracker margins were lower than expected," BASF says. "In addition, the low water level of the Rhine River in the fourth quarter of 2018 is expected to lead to negative earnings impacts of up to €200 million, higher than previously forecast."
BASF will report full-year 2018 annual report on 26 February 2019.
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