LUDWIGSHAFEN (dpa-AFX) - BASF (BFA.L, BASFY.PK) said that the preliminary results for the second quarter of 2019 were significantly below current analyst estimates and the company's expectations at the beginning of the year.
The company projects net income for the second quarter of 2019 to increase to 6.5 billion euros, compared to 1.5 billion euros reported last year. This was due to the book gain from the deconsolidation of Wintershall with the closing of the merger of Wintershall and DEA on May 1, 2019.
The company expects EBIT before special items for the second quarter of 2019 to be 1.0 billion euros, 47% below the previous year. The decline in EBIT before special items was mainly the result of considerably lower earnings in the Materials, Chemicals and Agricultural Solutions segments compared with the prior-year quarter.
Sales for the the second quarter of 2019 declined by 4% to 15.2 billion euros from 15.8 billion euros last year.
For the full year 2019, BASF now anticipates considerably lower EBIT before special items of up to 30% below the prior-year level, due to considerably weaker-than-expected business development in the second quarter of 2019 and the slowdown in global economic growth and industrial production. It was previously expected slight increase in EBIT before special items of 1%-10%.
For 2019, BASF now expects a slight decline in sales compared with the full year 2018. Previously, it was expected slight sales growth of 1 percent-5 percent.
BASF will publish its half-year financial report for the first half of 2019 on July 25, 2019.
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