06 May 2003 12:23 [Source: ICIS news]
Handing over control to Jurgen Hambrecht, Strube explicitly stated for the first time that BASF has accepted there will be no economic recovery soon.
"We do not expect there to be an upturn in the immediate future. The current phase of economic weakness has structural roots that will continue to exert a negative influence. We must also reckon with volatile prices for energy and raw materials."
Further, Strube said he now expected the second quarter to show "only very moderate growth in sales and earnings". This was a marginally more downbeat forecast than he gave just one week ago at the first quarter results announcement when he predicted "only a slight increase" in second quarter earnings.
Strube repeated that BASF's strong first quarter results - with sales up 7% and income from operations up more than 15% - should not be taken to indicate full year performance, because much of the earnings increase was due to the high oil price and customer stockpiling.
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|