BASF Confirms 2Q Results; Still Can't Provide Full-Year Outlook
By Kim Richters
BASF SE on Wednesday confirmed preliminary second-quarter
results and said it still can't provide full-year guidance.
The German chemical company said its net loss for the period was
878 million euros ($1.03 billion) compared with a profit of EUR5.95
billion a year earlier, citing a noncash-effective impairment to
subsidiary Wintershall Dea due to lower oil and gas prices and
changed reserve estimates. Profit for the second quarter of 2019
was boosted by the spin-off of oil-and-gas business
Quarterly earnings before interest and taxes dropped to EUR59
million from EUR507 million, while EBIT before special items fell
to EUR226 million from EUR995 million.
Sales fell to EUR12.68 billion from EUR14.48 billion mainly due
to lower sales volumes as a result of coronavirus lockdown
measures, BASF said.
Before the preliminary release, analysts had expected a
quarterly net loss of EUR158 million, EBIT before special items of
EUR146 million and sales of EUR11.08 billion, according to a
consensus provided by Vara Research.
BASF said it still couldn't provide a full-year sales and
earnings outlook due to economic uncertainty and low
It doesn't expect third-quarter EBIT before special items to
improve significantly on quarter, partly due to generally lower
demand in August.
Write to Kim Richters at firstname.lastname@example.org
(END) Dow Jones Newswires
July 29, 2020 02:08 ET (06:08 GMT)
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