BASF Expects Swing to 3Q Net Loss; Issues 2020 Forecast
By Joshua Kirby
BASF SE said Friday that it expects to swing to a net loss for
the third quarter due to impairments and restructuring, and it
issued guidance for the full year.
The German chemical company reported a preliminary net loss of
2.12 billion euros ($2.49 billion) for the quarter, down from a net
profit of EUR911 million a year earlier and below consensus
BASF expects a third-quarter loss before interest and taxes of
EUR2.64 billion, compared with EBIT of EUR1.34 billion a year
Earnings were hit by coronavirus-related impairments relating to
weaker demand in the automotive and aviation industries that
amounted to EUR2.8 billion, BASF said, as well as provisions for
Quarterly sales are expected to decline 5% on year to EUR13.81
billion from EUR14.56 billion.
For the full year, BASF expects EBIT before special items of
between EUR3.0 billion and EUR3.3 billion--down from EUR4.64
billion in 2019--and sales of between EUR57 billion and EUR58
billion, compared with EUR59.32 billion a year earlier.
"As well as weaker demand, the company expects pressure on
margins to continue, especially for basic chemicals, which will be
partially offset by fixed cost savings," the company said.
BASF will report final third-quarter results on Oct. 28.
Write to Joshua Kirby at email@example.com
(END) Dow Jones Newswires
October 09, 2020 09:04 ET (13:04 GMT)
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