BASF Cuts 2015 Guidance

Germany's BASF SE

reported a 4.8% drop in its third-quarter profit and cut its forecast for 2015. BASF now projects 2015 earnings before interest, taxes, depreciation and amortization of EUR10 billion ($12.65 billion) to EUR12 billion for 2015, versus an initial outlook of EUR14 billion. BASF's quarterly net profit rose to EUR1.04 billion, from a year-ago profit of EUR1.1 billion. However, analysts were expecting a profit of EUR1.11 billion. Earnings per share slipped to €1.14 from €1.20. EPS, excluding items, came in at €1.27. Sales rose 3.3% to EUR18.31 billion compared to EUR17.73 billion, versus analysts' estimates of EUR17.3 billion. In the Functional Materials & Solutions segment, sales rose 2% y/y, while sales in the Agricultural Solutions segment declined 3%. Sales in the Oil & Gas segment climbed 17%. In North America, sales gained 3%, while sales in Asia Pacific surged 4%. Sales in South America, Africa, Middle East jumped 8% in local-currency term. EBIT before special items climbed 8.9% to EUR1.84 billion versus EUR1.69 billion, compared to estimates of EUR1.74 billion. BASF's agricultural division posted a 75% drop in earnings. “The economic environment remained challenging in the third quarter of 2014. Geopolitical tensions and increasing uncertainty about the global economic development significantly dampened demand for chemical products. Nevertheless, sales and earnings of BASF Group increased in the third quarter of 2014,” said Dr. Kurt Bock, Chairman of the Board of Executive Directors of BASF SE. BASF shares gained 2.05% to close at $89.64 yesterday.