20 October 2010 08:12 [Source: ICIS news]
SINGAPORE (ICIS)--BASF said on Wednesday it was raising its profit forecast for the full year after a 23% year-on-year increase in third quarter sales to €15.8bn ($21.6bn) as a result of the recent recovery in global economic conditions.
The company’s third-quarter earnings before interest, tax (EBIT) excluding special items, meanwhile, surged 77% year on year to €2.2bn, the company said in a statement.
Full-year EBIT before special items was expected to top €8bn, while revenue was expected at around €63bn, it said.
“This exceeds the peak levels of the years 2007 and 2008,” BASF said.
“For the fourth quarter, the company expects the good business development to continue and has raised its outlook for the current year,” it added.
Sales in the first nine months of 2010 rose 27% year on year to €47.5bn, while EBIT before special items increased 89% to €6.4bn, according to the company.
In its outlook, the company said that volatile raw material and foreign exchange markets as well as increasing trade barriers may hamper the recovery in global economic conditions in the long-term.
“The positive economic development of the past months will not necessarily continue at the same pace in 2011. Risks also remain which could jeopardize a sustainable recovery,” said Jurgen Hambrecht, chairman of the board of executive directors of BASF.
BASF would be publishing its full third-quarter report on 28 October.
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