BASF Group: Adjustment of outlook for the fiscal year 2018
Ludwigshafen – December 7, 2018 – Based on the earnings data for November 2018, BASF now expects a considerable decrease in income from operations (EBIT) before special items for the fiscal year 2018 in the range of 15% to 20% compared with the prior year (EBIT before special items in 2017: €7,645 million). BASF previously forecast a slight decline of up to 10% compared with the prior-year figure. For EBIT of the BASF Group, the company continues to expect a considerable decline and for sales, a slight increase of up to 5%.
The significant decline in EBIT before special items compared with the prior-year figure is mainly attributable to the Chemicals segment. In particular, isocyanate prices fell more sharply, and steam cracker margins were lower than expected. In addition, the low water level of the Rhine River in the fourth quarter of 2018 is expected to lead to negative earnings impacts of up to €200 million, higher than previously forecast. In the third quarter of 2018, the negative earnings impact from the low water level of the Rhine could be limited to around €50 million.
Furthermore, BASF’s business with the automotive industry has continued to decline since the third quarter of 2018; in particular, demand from customers in China slowed significantly. The trade conflict between the United States and China contributed to this slowdown.
On Tuesday, February 26, 2019 at 7:00 a.m. CET, BASF will publish the Annual Report for the fiscal year 2018 and will comment on the figures at the annual press conference for journalists (from 10:30 a.m. CET) and the conference call for analysts and investors (from 2:00 p.m. CET).
At BASF, we create chemistry for a sustainable future. We combine economic success with environmental protection and social responsibility. The more than 115,000 employees in the BASF Group work on contributing to the success of our customers in nearly all sectors and almost every country in the world. Our portfolio is organized into four segments: Chemicals, Performance Products, Functional Materials & Solutions and Agricultural Solutions. BASF generated sales of more than €60 billion in 2017. BASF shares are traded on the stock exchanges in Frankfurt (BAS), London (BFA) and Zurich (BAS). Further information at www.basf.com/
Forward-looking statements and forecasts
This release contains forward-looking statements. These statements are based on current estimates and projections of the Board of Executive Directors and currently available information. Forward-looking statements are not guarantees of the future developments and results outlined therein. These are dependent on a number of factors; they involve various risks and uncertainties; and they are based on assumptions that may not prove to be accurate. BASF does not assume any obligation to update the forward-looking statements contained in this release above and beyond the legal requirements.