BASF expects pre-tax profit to fall 15%-20% in 2018

May 29, 2024, 11:58 AM

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BASF anticipates a substantial decline in its 2018 earnings, projecting a 15-20% drop in EBIT due to weak performance in the chemical sector, particularly in isocyanates and steam crackers. The company cites reduced demand from the automotive industry and the impact of the US-China trade conflict, alongside environmental factors affecting operations. Full-year results will be revealed on February 26, 2019.

BASF currently expects its earnings in 2018 to “substantially decline” based on its November results, citing weak performance in its chemical products sector. These factors include a decrease in the price of isocyanate, a decrease in the profitability of the cracker, and the impact of the low water level in the Rhine. BASF said demand in the automotive industry is also continuing to decline. BASF said: "The demand for Chinese customers has slowed significantly." "The trade conflict between the United States and China has contributed to this slowdown."

BASF expects full-year interest-earnings (EBIT) for 2018 to fall 15% to 20% before special projects, compared to 7.5 billion euros in the same period last year. BASF had previously forecast a 10% year-on-year decline, down from the previous year.

BASF said: "In particular, the price of isocyanate fell sharply and the profit margin of steam crackers was lower than expected." In addition, the low water level of the Rhine in the fourth quarter of 2018 is expected to cause a negative impact of up to 200 million euros, higher than Previous predictions.

BASF will release its 2018 Annual Results Report on February 26, 2019.

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