BASF Shares Drop After No 2020 Guidance Issued
By Kim Richters
Shares in BASF SE fell on Wednesday after the chemical
conglomerate still wasn't able to provide results forecasts for the
The German company said it couldn't provide an outlook on sales
and earnings due to economic uncertainty and low visibility amid
the coronavirus pandemic.
At 0930 GMT, shares in BASF traded 5.3% lower at EUR49.35.
As for the current third quarter, it said it didn't expect a
significant improvement in its operating profit before special
items compared with the second quarter, partly because demand was
generally lower in August and as its agriculture business is
BASF reported a 77% decline in operating profit before special
items, namely earnings before interest, taxes and special items, to
EUR226 million in the second quarter. It came in at EUR1.12 billion
in the third quarter last year.
Analysts now expect downgrades to third-quarter and full-year
consensus estimates. EBIT before special items this quarter was
expected at EUR669 million, according to the consensus estimates
provided by Vara Research.
"This increases the pressure on FY21E expectations as the
exit-rate looks increasingly challenged and will likely weigh on
sentiment for the shares," analysts at Citi said.
BASF confirmed previously released preliminary figures on
Wednesday, including a net loss of EUR878 million for the second
Write to Kim Richters at email@example.com
(END) Dow Jones Newswires
July 29, 2020 05:45 ET (09:45 GMT)
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