BASF Cuts 2018 EBIT Outlook, Expects 'Considerable Decrease'
10 Dicembre 2018 - 8:28AM
Dow Jones News
By Cristina Roca
BASF SE (BAS.XE) has lowered its forecast for full-year earnings
before interest and taxes, citing pricing pressures at its
chemicals division, higher-than-expected costs related to low water
levels on the Rhine river, and a decline in its auto industry
business.
The German chemicals company now expects "a considerable
decrease" in EBIT for 2018, it said late on Friday, having
previously forecast a decline of up to 10%.
BASF said a sharp drop in isocyanate prices and lower margins
for steam crackers at its chemicals division were the main reason
for the guidance cut, but also noted that it now expects the
effects of the Rhine's low water levels will cost it up to 200
million euros ($227.5 million) in the fourth quarter, more than
previously anticipated.
The Rhine's water levels have affected a number of industrial
companies this year, including Thyssenkrupp AG (TKA.XE) and
ArcelorMittal (MT.FR).
BASF in October said it had to reduce production because the low
water levels restricted raw-material supplies and reduced the
availability of water, which it uses for cooling processes.
BASF said its automotive business has continued to decline since
the third quarter, as demand from China slowed significantly,
dragged down, in part, by the U.S.-China trade conflict.
Write to Cristina Roca at cristina.roca@dowjones.com;
@_cristinaroca
(END) Dow Jones Newswires
December 10, 2018 02:13 ET (07:13 GMT)
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