BASF Raises Guidance After Posting Strong 3Q Sales
October 27 2021 - 2:04AM
Dow Jones News
By Ed Frankl
BASF SE on Wednesday raised its 2021 guidance after it said it
generated strong sales growth in the third quarter.
The German chemicals conglomerate said it swung to a net profit
of 1.25 billion euros ($1.45 billion) for the quarter to the end of
September, compared with a net loss of EUR2.12 billion a year
earlier.
The Leverkusen-based company posted revenue that jumped 42% on
year to EUR19.67 billion, above analysts' expectations of EUR17.83
billion according to estimates provided by the company.
Demand remained solid during the summer months and, compared
with 3Q 2020, the company increased prices by 36% and volumes by
6%, BASF said.
But growth momentum slowed compared with the second quarter of
2021 because of supply bottlenecks, which the company assumes will
continue to negatively affect global economic recovery in the
fourth quarter, BASF said.
The company's automotive business was especially affected by
continuing chip shortages, it said, and BASF flagged power cuts in
China as having a negative impact on production.
However, BASF anticipates continuing solid demand, and raised
its forecasts for the year.
It expects sales to grow to between EUR76 billion and EUR78
billion, from EUR74 billion to EUR77 billion previously. It also
expects earnings before interest and taxes before special items of
between EUR7.5 billion and EUR8.0 billion, from EUR7.0 billion to
EUR7.5 billion previously.
Write to Ed Frankl at edward.frankl@dowjones.com
(END) Dow Jones Newswires
October 27, 2021 01:49 ET (05:49 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
BASF (TG:BAS)
Historical Stock Chart
From Aug 2024 to Sep 2024
BASF (TG:BAS)
Historical Stock Chart
From Sep 2023 to Sep 2024