In the previous year, there was a loss of a good 2.1 billion euros in profit due to depreciation.
(Photo: dpa)
Ludwigshafen, Frankfurt BASF is stepping on the gas during its recovery and is setting itself higher annual targets again. For 2021, sales of 76 to 78 billion euros and an operating profit before special items of 7.5 to 8.0 billion are expected, as the Ludwigshafen-based chemical company announced on Wednesday.
BASF has raised its forecasts several times this year and most recently announced an increase in sales to 74 to 77 (2020: 59.1) billion euros, earnings before special items should roughly double to 7.0 to 7.5 (3, 6) billion euros.
BASF expects demand to remain solid, especially in the base chemicals business and in the Materials division, which manufactures plastic precursors and plastics, for example. In other segments, on the other hand, the group is hit by rising raw material, energy and freight costs.
The company assumes that delivery bottlenecks will continue to affect the global economic recovery in the fourth quarter. The chemical industry, and with it the industry leader, BASF, is an important economic indicator because its products are required in all major branches of industry.
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In the third quarter, operating profit (EBIT) before special items climbed to 1.87 billion euros, after 581 million euros in the same period of the previous year. Analysts had expected an average of 1.8 billion euros.
Sales rose by 42 percent to 19.7 billion euros. “Compared to the third quarter of the previous year, we were able to increase prices by 36 percent and volumes by six percent,” explained CEO Martin Brudermüller. The bottom line was that BASF had a profit of 1.25 billion euros. Years ago, a loss of 2.1 billion was incurred due to value adjustments and restructuring costs.
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