• Login
    • Join
  • FOLLOW:
  • Subscribe Free
    • Magazine
    • eNewsletter
    Checkout
    • Magazine
    • News
    • Exclusives
    • Top Companies
    • Printing Inks
    • Raw Materials
    • Equipment
    • Directories
    • Events
    • Jobs
    • More
  • Magazine
  • News
  • Exclusives
  • Top Companies
  • Printing Inks
  • Raw Materials
  • Equipment
  • Directories
  • Events
  • Jobs
  • Current / Back Issues
    Features
    Columns
    Editorial
    Digital Edition
    eNewsletter Archive
    Our Team
    Editorial Guidelines
    Subscribe Now
    Advertise Now
    eBook
    Top Features
    The Inkjet Ink Market in 2023

    The Pigment Market Continues to Grow in 2023

    TSCA and the Ink Industry

    Mike Oberski Receives NAPIM’s TAM Service Award

    Sustainability and Raw Materials
    Breaking News
    Distributor News
    Financial News
    Industry News
    Ink Manufacturers News
    Market Research
    Mergers and Acquisitions
    New Products
    Personnel
    Price Increases
    Printers News
    Suppliers News
    Live From Shows
    Video Bites
    Top News
    Crown Wins Multiple Awards for Innovative Designs Across Global Competitions

    Xerox Releases 4Q, Full-Year 2022 Results

    Electronics For Imaging Names Frank Pennisi as CEO

    Fiery to Separate from EFI, Remain Wholly-Owned by Siris

    Full Program for BIG IDEAS for UV+EB Technology 2023 Announced
    Whitepapers
    Glossary
    Top North American Companies
    Top International Companies
    Conductive Inks and Printed Electronics
    Graphic Arts Coatings
    Inkjet Inks and Toners
    Marking and Pad Printing Inks
    News Inks
    Packaging Flexo Inks
    Packaging Gravure Inks
    Publication Gravure Inks
    Publication Offset Inks
    Screen Inks
    Sheetfed Inks
    Specialty Inks
    UV and EB Inks

    Crown Wins Multiple Awards for Innovative Designs Across Global Competitions

    Xerox Releases 4Q, Full-Year 2022 Results

    Electronics For Imaging Names Frank Pennisi as CEO

    Fiery to Separate from EFI, Remain Wholly-Owned by Siris

    Full Program for BIG IDEAS for UV+EB Technology 2023 Announced
    Additives
    Energy-Curable Materials
    Flushed Colors and Pigments
    Metallics and Special Effects Pigments
    Resins
    Vehicles and Varnishes
    Waxes

    Full Program for BIG IDEAS for UV+EB Technology 2023 Announced

    The Pigment Market Continues to Grow in 2023

    Eco Friendly PTFE Alternatives For Printing Inks

    Pigments and Sustainability in the Ink Industry

    BASF’s Monomers Division Announces Sustainability Roadmap
    Energy-Curing Equipment
    Mills and Mixers
    Testing, Color and QC

    Full Program for BIG IDEAS for UV+EB Technology 2023 Announced

    The 2023 Ink Equipment Report

    RadTech Announces New President, President-Elect and Board Members

    ROSS Highlights FDA-3500 Dual Shaft Mixer

    X-Rite Announces New Ci7830 and Ci7630 Reflectance Benchtop Spectrophotometers
    Buyers Guide
    Distributor Guide
    European Ink Directory
    U.S. Ink Directory
    International Buyers Guide Companies
    Shin Etsu Silicones of America

    Specialty Polymers, Inc.

    Shamrock Technologies, Inc.

    Microtrac MRB, part of Verder Scientific

    Hockmeyer Equipment Corp.
    Industry Events
    Live from Show Event
    Webinars
    Top Events
    Eastern Coatings Show 2023
    • Magazine
      • Current / Back Issues
      • Features
      • Editorial
      • Columns
      • Digital Edition
      • eNewsletter Archive
      • Editorial Guidelines
      • Subscribe Now
      • Advertise Now
    • Breaking News
    • Directory
      • Buyers Guide
      • Distributor Guide
      • European Ink Directory
      • U.S. Ink Directory
      • Trade Associations
    • Printing Inks
      • Conductive Inks and Printed Electronics
      • Graphic Arts Coatings
      • Inkjet Inks and Toners
      • Marking and Pad Printing Inks
      • News Inks
      • Packaging Flexo Inks
      • Packaging Gravure Inks
      • Publication Gravure Inks
      • Publication Offset Inks
      • Screen Inks
      • Sheetfed Inks
      • Specialty Inks
      • UV and EB Inks
    • Raw Materials
      • Additives
      • Energy-Curable Materials
      • Flushed Colors and Pigments
      • Metallics and Special Effects Pigments
      • Resins
      • Vehicles and Varnishes
      • Waxes
    • Equipment
      • Energy-Curing Equipment
      • Mills and Mixers
      • Testing, Color and QC
    • Top Companies
      • Top North American Companies
      • Top International Companies
    • Glossary
    • Online Exclusives
    • Slideshows
    • Expert's Opinion
    • Videos
    • Podcasts
    • eBook
    • Blog
    • Infographics
    • Whitepapers
    • Jobs
    • Supplier Microsites
      • Companies
      • Literature / Brochures
      • Whitepapers
      • Product Spec Sheets
      • Videos
      • Jobs
    • Events
      • Industry Events
      • Live From Show Events
      • Webinars
    • About Us
      • About Us
      • Contact Us
      • Advertise With Us
      • Privacy Policy
      • Terms of Use
    Breaking News

    BASF Group: EBIT Before Special Items in Q2 2019 Considerably Below Expectations

    Outlook for full year 2019 lowered.

    BASF Group: EBIT Before Special Items in Q2 2019 Considerably Below Expectations
    Related CONTENT
    • BASF to Reshape Organization
    • Azelis Extends Partnership with BASF
    • NPIRI Summer Course: Deadline to Register, Reserve Hotel Room
    • BASF, Lutianhua Plan to Pilot New Process that Significantly Reduces CO2 Emissions
    • BASF Announces Personnel Changes
    07.10.19
    Significantly weaker-than-expected industrial production negatively impacted volumes and margin development at BASF.

    At around 1.5% according to current estimates, growth in industrial production in the first half of 2019 was much slower than expected.

    The downturn in growth in the global automotive industry was particularly strong: Globally, production declined by around 6% in the first half of 2019. In China, the world’s largest automotive market, the decrease was more than twice as high, at around 13%.

    The weak development of the agricultural sector in North America was an additional burden: Due to difficult weather conditions, the planting of key field crops in the region was down from the previous year and far below the historical average. The decrease in earnings prospects for farmers and the trade disputes led to lower demand for crop protection products. To date, the conflicts between the United States and its trading partners, particularly China, have not eased – contrary to what was assumed in the BASF Report 2018. In fact, the G20 summit at the end of June has shown that a rapid détente is not to be expected in the second half of 2019. Overall, uncertainty remains high.


    In this environment, the preliminary figures for the second quarter of 2019 are significantly below current analyst estimates and BASF’s expectations at the beginning of the year. Sales declined by 4% in the second quarter of 2019 to €15.2 billion (second quarter of 2018: €15.8 billion). EBIT before special items for the second quarter of 2019 is expected to be €1.0 billion, 47% below the figure for the same quarter of the previous year (second quarter of 2018: €2.0 billion). 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.

    As expected, significantly lower isocyanates prices led to a considerable year-on-year decline in the Materials segment’s EBIT before special items in the second quarter of 2019. In the Chemicals segment, the decrease was primarily due to the scheduled turnarounds of the steam crackers in Port Arthur, Texas, and Antwerp, Belgium; furthermore, margins for steam cracker products, especially in North America, were considerably lower than BASF forecast. EBIT before special items in the Agricultural Solutions segment was negatively impacted by the weak development of the agricultural sector in North America as a result of unpredictably difficult weather conditions and the trade conflict between the United States and China. In this challenging global economic environment, EBIT before special items in the remaining segments was either considerably (Industrial Solutions) or slightly (Surface Technologies; Nutrition & Care) higher year on year. EBIT before special items attributable to Other declined considerably compared with the prior-year quarter.

    The BASF Group’s EBIT for the second quarter of 2019 is expected to be 71% lower year on year, at €0.5 billion (second quarter of 2018: €1.9 billion). In addition to the decrease in EBIT before special items, this is mainly due to one-time costs for the excellence program and the impairment of a natural gas-based investment on the U.S. Gulf Coast, which BASF is no longer pursuing.

    BASF is systematically implementing the measures announced in connection with its strategy, especially regarding portfolio management and cost reduction. The ongoing excellence program is expected to deliver a positive contribution to EBITDA of €2 billion annually from the end of 2021 onward. In total, BASF is planning a reduction of around 6,000 positions worldwide by the end of 2021.

    Net income is expected to increase to €6.5 billion (second quarter of 2018: €1.5 billion). This is due to the book gain from the deconsolidation of Wintershall with the closing of the merger of Wintershall and DEA on May 1, 2019. It will be shown in income after taxes from discontinued operations.

    As a consequence of the considerably weaker-than-expected business development in the second quarter of 2019 and the slowdown in global economic growth and industrial production, mainly due to the trade conflicts, BASF now anticipates considerably lower EBIT before special items of up to 30% below the prior‑year level (previous forecast: slight increase in EBIT before special items of
    1–10%). For sales, BASF now expects a slight decline compared with the full year 2018 (previous forecast: slight sales growth of 1–5%). Return on capital employed (ROCE) for the full year 2019 is now expected to decline considerably compared with the previous year (previous forecast: ROCE slightly, i.e. 0.1–1.0 percentage points, lower than in 2018).
    Related Searches
    • led
    • basf
    • chemicals
    • sales
    Suggested For You
    BASF to Reshape Organization BASF to Reshape Organization
    Azelis Extends Partnership with BASF Azelis Extends Partnership with BASF
    NPIRI Summer Course: Deadline to Register, Reserve Hotel Room NPIRI Summer Course: Deadline to Register, Reserve Hotel Room
    BASF, Lutianhua Plan to Pilot New Process that Significantly Reduces CO2 Emissions BASF, Lutianhua Plan to Pilot New Process that Significantly Reduces CO2 Emissions
    BASF Announces Personnel Changes BASF Announces Personnel Changes
    Learn From Experts, Get Hands-On Press Experience at NPIRI’s Summer Course Learn From Experts, Get Hands-On Press Experience at NPIRI’s Summer Course
    BASF Improves Supply of Attapulgite-Based Additives BASF Improves Supply of Attapulgite-Based Additives
    The European  Pigment Industry  Heads for a  Major Shakeup The European Pigment Industry Heads for a Major Shakeup
    Eastern Coatings Show Ends on a High Note Eastern Coatings Show Ends on a High Note
    BASF Group Increases Sales in 1Q 2019 BASF Group Increases Sales in 1Q 2019
    BASF Invests in Silicate-based Specialty Chemicals Business BASF Invests in Silicate-based Specialty Chemicals Business
    BASF Launches Vinyl Monomer for UV Curing Products in Printing, Coatings Industries BASF Launches Vinyl Monomer for UV Curing Products in Printing, Coatings Industries
    BASF Posts Slight Increase in 2018 Sales BASF Posts Slight Increase in 2018 Sales
    BASF Recognized as Leader in Corporate Climate Action, Water Security BASF Recognized as Leader in Corporate Climate Action, Water Security

    Related Breaking News

    • Breaking News | Energy-Curable Materials | Financial News | Flushed Colors and Pigments | Metallics and Special Effects Pigments | Resins | Suppliers News
      BASF to Reshape Organization

      BASF to Reshape Organization

      Announces reduction of 6,000 positions worldwide until the end of 2021.
      06.28.19

    • Additives | Breaking News | Distributor News | Energy-Curable Materials | Flushed Colors and Pigments | Resins | Suppliers News

      Azelis Extends Partnership with BASF

      Becomes distributor for dispersions, resins and additives in Turkey.
      06.26.19

    • Breaking News | Industry News | Ink Manufacturers News
      NPIRI Summer Course: Deadline to Register, Reserve Hotel Room

      NPIRI Summer Course: Deadline to Register, Reserve Hotel Room

      Reserve a discounted hotel room by June 30.
      06.19.19


    • Additives | Breaking News | Suppliers News
      BASF, Lutianhua Plan to Pilot New Process that Significantly Reduces CO2 Emissions

      BASF, Lutianhua Plan to Pilot New Process that Significantly Reduces CO2 Emissions

      Signed MoU to build pilot plant for new, energy-efficient one-step process in synthesizing dimethyl ether developed by BASF and Linde.
      06.18.19

    • Breaking News | Energy-Curable Materials | Personnel | Suppliers News
      BASF Announces Personnel Changes

      BASF Announces Personnel Changes

      Martin Jung will join Performance Materials on Aug. 1, 2019, and will, as president, succeed Raimar Jahn effective Sept. 1, 2019.
      06.17.19

    Loading, Please Wait..
    Trending
    • Ink Industry Mourns George Willock
    • The Key Ingredients To Ink
    • Fiery To Separate From EFI, Remain Wholly-Owned By Siris
    • Electronics For Imaging Names Frank Pennisi As CEO
    • Heidelberg Is Launching Energy Efficiency Campaign For Print Shops
    Breaking News
    • Crown Wins Multiple Awards for Innovative Designs Across Global Competitions
    • Xerox Releases 4Q, Full-Year 2022 Results
    • Electronics For Imaging Names Frank Pennisi as CEO
    • Fiery to Separate from EFI, Remain Wholly-Owned by Siris
    • Full Program for BIG IDEAS for UV+EB Technology 2023 Announced
    View Breaking News >
    CURRENT ISSUE

    October 2022

    • 2023 Buyers’ Guide
    • Raw Materials in 2022
    • The 2022 Digital Textile Ink Market
    • The Asia Pacific Ink Market Continues to Grow
    • Azelis Mexico Dedicates Innovation Center
    • Kodak Continues to Grow in Digital Printing
    • What's Next in Packaging and Food Contact Materials?
    • Africa’s Pharmaceutical Packaging, Inks Set for Growth
    • View More >

    Cookies help us to provide you with an excellent service. By using our website, you declare yourself in agreement with our use of cookies.
    You can obtain detailed information about the use of cookies on our website by clicking on "More information”.

    • About Us
    • Privacy Policy
    • Terms And Conditions
    • Contact Us

    follow us

    Subscribe
    Nutraceuticals World

    Latest Breaking News From Nutraceuticals World

    Probiotics Supplementation Reduces Complications in Colorectal Cancer Patients
    Vitamin D Supplementation Reduces Risk of Dynapenia
    Sustained-Release Caffeine Ingredient Offers Mood, Performance Benefits
    Coatings World

    Latest Breaking News From Coatings World

    Epoxytec Announces New Website Launch
    Paints and Coatings Market Worth $212B by 2026: MarketsandMarkets
    Axalta Releases Fourth Quarter and Full Year 2022 Results
    Medical Product Outsourcing

    Latest Breaking News From Medical Product Outsourcing

    BMP Medical Expands Sterling, Massachusetts Facility
    Abbott's Proclaim XR SCS OK'ed for Diabetic Neuropathy
    Environmental Sustainability Becoming Increasingly Important to Medtech Industry
    Contract Pharma

    Latest Breaking News From Contract Pharma

    Pasithea Signs CMC Development and Manufacturing Agreement
    Experic Expands Analytical Capabilities and Facilities
    List Labs Expands Manufacturing Capacity
    Beauty Packaging

    Latest Breaking News From Beauty Packaging

    Haircare Brand Uncle Funky’s Daughter Announces Retail Expansion
    TRESemmé Introduces New Pro Infusion Collection
    Walgreens Boots Alliance Shares 2022 ESG Report
    Happi

    Latest Breaking News From Happi

    Florida Woman Patents Cleansing Cream for Intimate Areas
    Mary Kay Develops Sensitive Skin Composition To Treat Oxidative Damage
    KimChi Beauty Launches Spinning Hearts Love Line Ahead of Valentine’s Day
    Ink World

    Latest Breaking News From Ink World

    Crown Wins Multiple Awards for Innovative Designs Across Global Competitions
    Xerox Releases 4Q, Full-Year 2022 Results
    Electronics For Imaging Names Frank Pennisi as CEO
    Label & Narrow Web

    Latest Breaking News From Label & Narrow Web

    EFI appoints Frank Pennisi CEO, Fiery now an independent business
    Bobst boosts senior sales team with Keith Nagle
    Penmar Industries adds Screen Truepress Jet L350UV SAI digital press
    Nonwovens Industry

    Latest Breaking News From Nonwovens Industry

    Essity’s Sales Grow
    Thinx to Pay up to $5 million to Settle Class Action Suit
    Typar Highlighting New Building Innovations
    Orthopedic Design & Technology

    Latest Breaking News From Orthopedic Design & Technology

    Orthofix Launches the Mariner Deformity System
    Tyber Medical Hires 2 New Execs
    Miach Ortho Raises $40M in Series B Funding
    Printed Electronics Now

    Latest Breaking News From Printed Electronics Now

    Stuart Achieves 70% Warehouse Productivity Gains with Zebra
    STMicroelectronics Reports Q4, FY 2022 Financial Results
    Flex Reports 3Q Fiscal 2023 Results

    Copyright © 2023 Rodman Media. All rights reserved. Use of this constitutes acceptance of our privacy policy The material on this site may not be reproduced, distributed, transmitted, or otherwise used, except with the prior written permission of Rodman Media.

    AD BLOCKER DETECTED

    Our website is made possible by displaying online advertisements to our visitors.
    Please consider supporting us by disabling your ad blocker.


    FREE SUBSCRIPTION Already a subscriber? Login