LUDWIGSHAFEN (dpa-AFX) - German chemicals giant BASF SE (BFA.L, BASFY.PK) reported that its preliminary sales for 2017 rose by 12% to EUR64.5 billion from last year's EUR57.6 billion.
EBIT before special items for 2017 is expected to be EUR8.3 billion, 32% above the prior-year figure of EUR6.3 billion. The year-on-year earnings growth is primarily attributable to the strong earnings increase in the Chemicals segment. Higher volumes and margins in the Monomers, Petrochemicals and Intermediates divisions are the main contributing factors. The significant earnings improvements in the Oil & Gas segment and in Other also contribute to the BASF Group's considerably higher EBIT before special items.
For the full year 2017, the BASF Group's EBIT is expected to rise by 36% to EUR8.5 billion from EUR6.3 billion last year. Net income is expected to exceed the prior-year level by 50% and reach around EUR6.1 billion , compared to EUR4.1 billion in 2016. The reduction in the U.S. corporate tax rate from 35% to 21% results in one-time noncash, deferred tax income of almost EUR400 million in the fourth quarter of 2017.
The BASF Group's key earnings figures for the 2017 business year significantly exceed analyst estimates.
On February 27, 2018 at 07:00 a.m. CET, BASF will publish the BASF Report 2017.
Copyright RTT News/dpa-AFX