BASF 1Q Earnings Declined; Warns of 2Q Hit
By Kim Richters
BASF SE said Thursday that first-quarter earnings fell amid the
coronavirus pandemic, and it warned of significant sales volume
decline in the next quarter.
The German chemicals company said net profit for the period was
885 million euros ($960.9 million), compared with EUR1.41 billion a
Quarterly earnings before interest, taxes, depreciation and
amortization declined 12% to EUR2.43 billion, while earnings before
interest and taxes fell 18% to EUR1.46 billion.
EBIT before special items was EUR1.64 billion for the period,
down from EUR1.75 billion a year earlier and mainly due to lower
earnings in its Chemicals and Materials segments.
However, sales rose 7% to EUR16.75 billion, BASF said.
BASF's supervisory board decided to waive 20% of its fixed
compensation from April until end of 2020, while its executive
board will waive 20% of fixed salaries for 2Q.
The company late Wednesday withdrew its guidance for the year
due to the pandemic but maintained its 2019 dividend proposal.
It now said it expects significant sales volume decline in 2Q
and a slow recovery for 3Q and 4Q this year.
Write to Kim Richters at email@example.com
(END) Dow Jones Newswires
April 30, 2020 01:50 ET (05:50 GMT)
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