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Chemicals giant BASF posted a slightly less intoxicating result for the third quarter. The forecasts for the year have been confirmed. However, a warning on profits still does not seem excluded.
Sales increased by 8% during the period under review to 15.6 billion euros (badysts' forecasts: 14.9 billion euros). According to BASF, 6% of growth was due to higher selling prices and 2% higher volume. EBIT before exceptional items amounted to 1.47 billion euros, down 14% from the previous year, due to weak chemicals activities base, with estimates at 1.51 billion euros. The net profit of 1.20 billion euros was also slightly lower than the estimate of 1.25 billion euros. For the complete announcement of the company.
The profit warning, with which some investment dealers had counted, remained outstanding. However, the figures contain very little, which could ensure a sustainable reversal of price, at least in the short term. Economic challenges are increasing. Margins in the chemicals sector are already under pressure and should continue to decline. Profit forecasts should continue to fall. Burden of integration and conversion costs. The low level of the Rhine water also makes its mark. As a result, a late reduction in forecasts during the year can not be totally ruled out.
The price of the action remains uncertain. Since its interim recovery in September to just under 82 euros, this share has lost nearly 20% in value. On Friday, they had reached a minimum of 64.33 euros in the summer of 2016. Since their record of 98.80 euros reached in January, the stock market value has been reduced by a good third.
The numbers do not go very well in most major badytical firms. Financial Markets Day could have a boost in a month. For investors, no additional action is needed at the moment. Because before you start, you have to wait for a background training.
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