BASF, the German chemical company, announced a decline in second-quarter earnings due to lower prices and demand. However, the company anticipates a potential recovery in the latter half of the year.
Lower Profits and Sales
BASF confirmed their preliminary figures, reporting a quarterly net profit of 499 million euros ($547.9 million). This represents a significant decrease from the prior-year period, where they recorded EUR2.09 billion in net profit. The company also observed a decline in sales, with revenues totaling EUR17.3 billion, down 25% compared to the same period last year.
Earnings Before Interest and Taxes
Furthermore, BASF verified their pre-released second-quarter earnings before interest and taxes (EBIT) before special items, amounting to EUR1.01 billion.
Impact of Low Customer Demand
BASF acknowledged a notable drop in demand from various customer industries throughout the quarter. However, they noted an exception with the automotive sector.
The company affirmed its guidance as outlined on July 12, asserting that they do not anticipate further weakening global demand in the second half of the year. BASF projects a slow growth in global consumer goods demand compared to previous estimations.
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