BASF 1Q Hit by Auto Slowdown, Trade Tensions
May 03 2019 - 12:48AM
Dow Jones News
By Nathan Allen
BASF SE's (BAS.XE) first-quarter profit dropped as as global
trade tensions and a slowdown in the auto industry continued to
take their toll, the company said Friday.
The German chemical maker said net profit fell to 1.41 billion
euros ($1.58 billion) from EUR1.68 billion a year earlier, but beat
a consensus forecast of EUR1.27 billion.
However, sales ticked up to EUR16.18 billion from EUR15.70
billion, the company said.
BASF said margins on isocyanate production and from its its
steam crackers, which produce basic petrochemical products such as
ethylene and propylene, weakened from exceptionally high levels a
year earlier.
The company had already warned that 2019 would be a transitional
year as it rolls out a new divisional structure and integrates
several agricultural businesses it bought from rival Bayer AG
(BAYN.XE) last year.
Still, BASF stuck to its 2019 guidance for slight sales growth
and slightly higher earnings before interest and taxes before
special items, suggesting that it is more optimistic for the second
half.
Write to Nathan Allen at nathan.allen@dowjones.com
(END) Dow Jones Newswires
May 03, 2019 01:33 ET (05:33 GMT)
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