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BASF Q3 Net Up 18.5%, But Prices and Currency Pressure Chem Sales
Posted: October 28, 2013
BASF’s third-quarter net income rose 18.5%, mainly due to higher contributions from its functional materials and solutions and performance products segments in addition to lower charges in its other segment. However, sales in its chemical segment fell during the quarter and the company expects the fourth quarter to remain challenging.
Net income for the quarter rose to €1.10 billion from $925 million a year earlier. Third-quarter sales rose 1.5% to €17.73 billion from €17.47 billion a year earlier. However, in the chemicals segment, sales fell 8% compared with the third quarter of 2012. This decline was especially due to lower prices and negative currency effects.
BASF, an economic bellwether for a number of industries, left its 2013 global economic outlook unchanged. For BASF’s business, the company expects overall stronger demand for 2013 compared with the previous year, although the fourth quarter is expected to face pressure from currency effects.
“We do not anticipate an upturn in the global economy for the fourth quarter of 2013,” said Kurt Bock, chairman of the board of executive directors of BASF SE. “The environment is likely to remain challenging: We anticipate uneven development marked by economic uncertainty. Currency effects will continue to negatively impact sales and earnings in the fourth quarter. Nevertheless, we still aim to exceed the 2012 levels in sales and EBIT (Earnings Before Interest and Taxes) before special items.”