BASF slashes forecast on poor November results
IHS Markit Chemical Week's latest coverage of BASF unveils their latest competitive strategies. Get the clearest possible view of your position in relation to BASF with IHS Markit Company Strategies and Performance.
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.
- The Near-Term Reduction of the North American Advantage for Polyethylene
- How is polymer demand impacted by the COVID-19 pandemic?
- Middle East Dilemma
- Impact of Covid-19 and low oil pricing on global chemical markets
- Basic Chemicals - The Curve is Already Flattened!
- Podcast: Olefins Weekly Wrap-Up April 24
- Impact of plastics recycling on the future of energy transition
- Podcast: Olefins Weekly Wrap-Up
RT @IHSMarkit: "If you want to take care of shareholders, you better take care of your people, and you better take care of your planet, and…