.jpg)
3 hours ago
2
Article content
(Bloomberg) — BASF SE’s third-quarter earnings beat expectations as the chemicals maker navigates worsening geopolitical uncertainties putting pressure on demand.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
Earnings before interest, tax, depreciation, amortization and special items declined 4.8% to €1.54 billion ($1.8 billion) compared to the year-earlier period, BASF said Wednesday. The result was above analyst expectations of a €1.48 billion result.
Article content
Article content
BASF said lower prices and currency headwinds mainly from a weaker dollar weighed on key segments, including chemicals and materials. Demand in the surface technologies and agricultural solutions units only partially offset the drag on earnings as customers remained cautious in almost “all industries and regions,” Chief Executive Officer Markus Kamieth said in a statement.
Article content
Article content
Like some peers, BASF is cutting costs and streamlining its business. This month, it agreed to sell its coatings business to US private equity firm Carlyle Group Inc. and its partner, Qatar Investment Authority, in a €7.7 billion deal. The disposal furthers efforts to reorient the group to counter a decline in global demand.
Article content
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
Article content
Late Tuesday, BASF said it’ll pull forward part of a €4 billion share buyback program to support its share price, buoyed by proceeds from selling the coatings business and other smaller divestitures. The company will in November buy back shares of as much as €1.5 billion.
Article content
BASF on Wednesday also confirmed its annual outlook, while making technical adjustments to account for the discontinued business units including automotive coatings and surface treatment. Earnings will reach as much as €7.1 billion this year, BASF said. In July, Europe’s biggest chemicals producer cut its guidance because of shrinking demand as customers hold back amid increased global uncertainties.
Article content
Industrial manufacturers including BASF have long struggled with high energy costs, with export-orientated German companies being especially vulnerable to rising trade hurdles and muted demand from the automotive industry. Germany’s chemicals sector operated at just 72% of capacity in the second quarter, according to the VCI lobby group.
Article content
Article content
The German manufacturer also plans to list its agrichemicals division, which could be worth more than €20 billion. BASF named Livio Tedeschi, the head of the unit since 2022, to the company’s executive board from May to help with the planned partial listing, the company said Tuesday.
Article content
BASF is pursuing a focus on its main units, chemicals, industrial solutions and nutrition. The divisions make products ranging from basic chemicals to resins or industrial additives and ingredients needed to produce fertilizers, cosmetics or detergents.
Article content
(Updates with share buyback in fifth, outlook in sixth paragraph)
Article content
English (US)