Ludwigshafen, Germany — EBIT at BASF could be down by 71% in the second quarter of 2019 as poor industrial and automotive production, trade issues and a hard winter in North America came together.
In a stock market announcement, BASF said that EBIT could be EUR 500m, compared to EUR 1.9bn in the second quarter of 2018.
'As expected, significantly lower isocyanate prices led to a considerable year-on-year decline in the materials segments EBIT before special items,' the company said.
It added that net income is likely to increase to EUR 6.5bn from EUR 1.5bn in 2018. This is because of a book gain from its exit from Wintershall, the gas and energy company, which took place on 1 May 2019.
The automotive sector is a key market for the German giant. BASF said that global car production is down by 6% worldwide in the first half of 2019. In China the fall is greater: 13% in the same period, said BASF. In Europe in June, new car registrations fell by 8% compared with the same month in 2018, for example.