CAPTION: BASF hit by weak global demand, swings to net loss in third quarter. (picture alliance/dpa/Uwe Anspach)
German chemicals maker BASF said it is feeling the effects of weak global demand as it reported significant declines in sales and operating profits in the third quarter.
Sales fell by 28.3% year-on-year to €15.7 billion ($16.6 billion), BASF said in a statement. This was due to significantly lower prices and volumes. Negative currency effects were also a drag.
Earnings before interest and taxes (EBIT), adjusted for special items, fell by 57.3% to €575 million. As a result, BASF posted a €249 million net loss compared with €909 million in profit a year ago.
BASF attributed the decline largely to "the overall negative earnings" of oil and gas subsidiary Wintershall.
"Sales volumes were considerably lower than in the prior-year quarter across all customer industries – with the exception of automotive," said chief executive Martin Brudermüller in a statement.
For the current year, BASF gave a cautious outlook. While it maintained its earlier guidance, it said sales and operating income would come in at the "lower end of the respective ranges."
The company expects sales this year of between €73 billion and €76 billion, and EBIT before special items of between €4 billion and €4.4 billion.
BASF has already launched an austerity programme, including job cuts, due to deteriorating business and tougher market conditions in Europe.
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