Germany’s BASF Warns on Profits Amid Weak Auto Sector, Trade

BERLIN (AP) — SHARES IN Germany-based chemicals maker BASF have dropped after the company issued a profit warning, citing factors that included declining global auto production, weakness in the North American agricultural sector and trade conflicts.

BASF shares dropped 5.1% to 59.38 euros ($66.62) in early Frankfurt trading Tuesday.

Newsletter sign up

On Monday evening, the company said its preliminary second-quarter figures were significantly below both analyst estimates and its own expectations at the beginning of 2019. It said it now expects full-year earnings before interest and taxes to be up to 30% below last year’s, compared with its previous forecast of a slight increase.

BASF warning cited slower-than-anticipated overall growth in industrial production, including a decline in the auto industry. It said demand for crop protection products was down, in part because of trade disputes.

Are you enjoying the article? Join our community for even more!


Click Here

Related posts

‘Expect Change’: Robert Lighthizer Is Trump’s Hardball-Playing China Trade Negotiator

Camila Coutinho

Trade war could trigger a ‘global financial crisis,’ says ex-China central bank chief

Camila Coutinho

Brexit: EU points finger at UK for Theresa May’s deal defeat

Camila Coutinho

Leave a Comment