AFP, Frankfurt Am Main :
German chemicals giant BASF stuck Friday to its full-year targets even as it reported falling profits in the first quarter, blaming the drop on global trade tensions’ damping effect on business.
Between January and March, the Ludwigshafen-based group saw net profits fall 16 percent year-on-year to 1.4 billion euros ($1.6 billion) – slightly higher than forecast by analysts surveyed by Factset.
Operating, or underlying profit before special items also fell, shedding 24 percent to 1.7 billion euros, although the group had managed to boost revenues three percent, to 16.2 billion.
“Geopolitical developments and trade conflicts” had subdued activity at many clients like the important car industry, squeezing demand for BASF products, the group said, pointing to tensions “especially between the United States and China”.
With prices and sales volumes falling compared with early 2018, the company’s acquisition of billions of euros in agrichemical activities from Bayer last year accounted for most of the growth in revenue.
German chemicals giant BASF stuck Friday to its full-year targets even as it reported falling profits in the first quarter, blaming the drop on global trade tensions’ damping effect on business.
Between January and March, the Ludwigshafen-based group saw net profits fall 16 percent year-on-year to 1.4 billion euros ($1.6 billion) – slightly higher than forecast by analysts surveyed by Factset.
Operating, or underlying profit before special items also fell, shedding 24 percent to 1.7 billion euros, although the group had managed to boost revenues three percent, to 16.2 billion.
“Geopolitical developments and trade conflicts” had subdued activity at many clients like the important car industry, squeezing demand for BASF products, the group said, pointing to tensions “especially between the United States and China”.
With prices and sales volumes falling compared with early 2018, the company’s acquisition of billions of euros in agrichemical activities from Bayer last year accounted for most of the growth in revenue.
