Ludwigshafen, Germany — BASF’s preliminary sales figures for Q3 2016 were reported as EUR 14bn ($ 15.3 bn), a fall of 19.6% compared to sales of EUR 17.4bn in Q3 2015.
Income from operations (EBIT) before special items in the 2016 quarter was EUR 1.5bn compared to EUR 1.6bn in the prior year quarter – a drop of 5.4%. EBIT was EUR 1.5bn - 22.5% lower than the previous year’s quarter, the firm said.
The firm added that preliminary third-quarter earnings of the group and all segments are "higher than average analysts’ estimates."
“The decrease in sales and earnings compared with the prior third quarter is mainly a result of the divestiture of the natural gas trading activities on September 30, 2015.
“Earnings in the Performance Products, Functional Materials & Solutions and Agricultural Solutions segments are considerably higher than in the prior year quarter.
In terms of the outlook for 2016, BASF said sales will “decline considerably due to the divestiture of the gas trading business” and the company continues to expect EBIT before special items to be slightly below the level of 2015. The company said “considerable” represents a change of 6% and higher while for earnings, “slight” means a change of up to 10%.
BASF’s complete earnings figures will be reported in a telephone conference on Thursday, October 27, 2016.
XE C urrency conversion: 13 October, 2016