German chemicals giant BASF lowered its outlook for the year, citing weak industrial production and ongoing trade conflicts around the world.
"To date, the conflicts between the United States and its trading partners, particularly China, have not eased," the company based in Ludwigshafen said in a statement on Monday.
"In fact, the G20 summit at the end of June has shown that a rapid detente is not to be expected in the second half of 2019," the statement said.
Consequently, the company now expects its earnings before interest and taxes (EBIT) before special items to be as much as 30 per cent lower than last year's level, rather than seeing an increase of 1-10 per cent, as previously forecast.
Sales is also expected to decline compared with the full year 2018, instead of increasing by 1-5 per cent as previously forecast.
US President Donald Trump has complained that trade conditions in several countries are unfair to US companies and taxpayers and has placed tariffs on goods from several countries around the world, including large industrial economies like China and the European Union.
The second quarter was characterized by weaker-than-expected industrial production, particularly in the global automotive industry, BASF said.
The weak agricultural sector in North America also burdened the company's second-quarter results, with second-quarter EBIT before special items expected to be 1 billion euros (1.12 billion dollars), or 47 per cent lower than in the same period a year earlier.
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