BASF Pulls Guidance, Sees Slow Recovery
By Ruth Bender
BERLIN--German chemicals giant BASF SE said it expects sales
volumes to decline significantly in the second quarter before a
slow recovery throughout the rest of the year as the coronavirus
pandemic is hitting hard its largest customer segment, the auto
BASF said it won't be able to meet its full-year goals, notably
because of ongoing production paystoppages in the automotive
industry. Reliable forecasts for the year were currently
impossible, it said.
"The first quarter of 2020 was not a normal quarter. The same
will be true for the second quarter and likely for the entire
year," said Chief Executive Martin Brudermueller.
Earnings before interest and tax, excluding special items such
as restructuring charges, fell 6% to 1.64 billion euros (1.78$
billion) in the first quarter as declines in its chemicals and
materials business weren't able to offset increases in demand in
other segments due to the pandemic, such as pharma, detergents and
cleaners, and food. Net profit fell to EUR885 million from EUR1.41
billion a year earlier.
To help weather the crisis, BASF said its supervisory board
members would forego 20% of their fixed compensation from April 1
until the end of the year and members of the executive board would
also waive 20% of their fixed salaries for the second quarter.
Write to Ruth Bender at email@example.com
(END) Dow Jones Newswires
April 30, 2020 03:02 ET (07:02 GMT)
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