BASF Books Robust Quarterly Profit Despite Euro Headwind

BASF Books Robust Quarterly Profit Despite Euro Headwind

However, CEO Kurt Bock warned that the company did not foresee an increase in the global economic outlook in the fourth quarter.

BERLIN -- The world's biggest chemicals company, BASF (IW 1000/32), announced on Thursday better-than-expected net profit in the third quarter and held to its targets for the year.

But despite the robust earnings, the company warned that the result came despite headwinds caused by the strength of the euro, especially against the Japanese yen and Brazilian real.

BASF makes a wide variety of chemicals for plastics, paints, textiles and drugs as well as the auto, construction and agricultural sectors.

Between July and September, the group booked better-than-expected net income of 1.1 billion euros (US$1.52 billion), up a sharp 18% year on year.

Analysts polled by Dow Jones Newswires had expected a rise of 12% to 1.04 billion euros.

Sales however rose only slightly by 1.5% to 17.7 billion euros, affected by the exchange rate and confirming analysts' estimates.

Chief executive Kurt Bock said strong depreciations in foreign currencies hurt revenue by between 150 million and 200 million euros in the third quarter.

And despite a solid July-September period, Bock warned that the company did not foresee an increase in the global economic outlook in the fourth quarter.

The context "will remain difficult," Bock said.

Copyright Agence France-Presse, 2013

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