Income

BASF announces an operating result well above forecasts

A general view of German chemical company BASF Schwarzheide GmbH in Schwarzheide, Germany, December 10, 2019. REUTERS/Annegret Hilse/

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FRANKFURT, July 11 (Reuters) – German chemicals giant BASF (BASFn.DE) said its second-quarter operating profit was well above analysts’ expectations as it passed on higher raw material costs and benefited from a strong dollar

Quarterly profit before interest, taxes and special items was 2.34 billion euros ($2.36 billion), slightly below the 2.36 billion euros it had earned a year earlier, BASF said in an unscheduled statement Monday, citing preliminary numbers.

BASF, which is due to release detailed results on July 27, said its outlook for the full year remained unchanged.

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Chief executive Martin Burdermueller warned last month that while the group enjoyed strong pricing power in the first half, it would likely face a considerable downturn at the start of the second half.

He warned at the time that inflation would start to weigh on consumer demand and that competitors would have to restore crippled supply chains.

The group also said in a statement last month that it was preparing for a massive increase in gas prices amid dwindling supplies from Russia. Read more

Second-quarter sales rose 16.3% to 22.97 billion euros, well above market consensus.

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Reporting by Ludwig Burger; Editing by Hugh Lawson and Bernadette Baum

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