The logo of the chemicals producer BASF seen during a press conference. (picture alliance/Uwe Anspach/dpa)
German chemicals giant BASF on Thursday posted a decline in turnover in the third quarter, hit by a downturn in the global economy and lower prices in its chemicals and materials units.
Turnover declined 2 per cent on the same quarter last year to 15.23 billion euros (16.96 billion dollars), the company reported from its headquarters in Ludwigshafen. Profits on an EBIT basis fell by almost a quarter to 1.1 billion euros.
The chemicals unit takes in basic chemicals, while materials includes plastics, where global overcapacity in production of isocyanate, a precursor chemical, is hitting prices.
Looking at the global picture, factors like the Brexit were affecting not only European exporters, but also the US economy. While China was continuing to grow, the growth was at a lower rate, Brudermueller said.
Production in the automotive sector - a key consumer of BASF products - had fallen by comparison with the first half year.
But he noted that certain downstream areas had shown success, including the surface technologies unit which focuses on automotive catalysts and coatings.
The company's agricultural products also benefited from a good start to the season in South America.
BASF confirmed its prognosis for the current year after cutting its forecast in the summer.
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