26 April 2013 07:40 [Source: ICIS news]
SINGAPORE (ICIS)--German chemicals major BASF reported on Friday a 15.1% year-on-year drop in its first-quarter net profit to €1.45bn ($1.89bn), weighed down by one-off gains in the same period of 2012 following the sale of its fertilizer business.
The company’s sales was up by 4.8% year on year at €19.7bn in January-March this year, while earnings before interest and taxes (EBIT) fell by 16.5% to €2.17bn, the company said in a statement.
“Special income from the divestiture of the fertilizer business of €645m in the first quarter of the previous year was primarily responsible for this reduction,” it added.
Its EBIT before special items rose by 10% year on year to €2.2bn, buoyed by higher margins at its chemicals segment.
For 2013, the company said it aims to exceed its full-year 2012 sales and EBIT before special items.
“We expect global economic growth to pick up only slightly in 2013. The chemical industry will increase production again compared to 2012 because the emerging markets are growing,” it said.
“However, we do not expect a straight-line trend. The market environment remains volatile,” the company added.
Economic growth would be dampened by an escalation of the debt crises in the eurozone and the US as well as by lower demand in Asia, according to BASF.
($1 = €0.77)
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