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BASF shares: Loss of billions and then also sell signals …

As in June, the BASF share turns downwards in the zone at the 58 euro mark. On June 8, the DAX value had reached its previous recovery high after the Corona crash at EUR 58.40, which it was possible to return to in the past few days. But with daily highs at 57.92 euros yesterday Thursday and 57.76 euros in today’s trading, the share of the chemical group from Ludwigshafen does not succeed in decisively overcoming the technical chart hurdle – the attempt to break out fails clearly. The fact that BASF’s share price is now only listed at EUR 55.44 and shortly before reached the previous daily low of EUR 55.15 is partly due to this technical development. The other part is news that the company presented today.

According to preliminary figures for the third quarter, sales at BASF have fallen from 14.6 billion euros to 13.8 billion euros. At 681 million euros, earnings before interest and taxes adjusted for special effects are higher than analysts have forecast. Compared to the previous year’s value of 1.06 billion euros, the operating profit fell significantly. “The decline in EBIT before special items of the BASF Group compared to the third quarter of 2019 resulted in particular from the continued weak earnings contributions from the upstream Chemicals and Materials segments as a result of persistently high margin pressure,” said BASF on the earnings trend.

Value adjustments and restructuring provisions caused BASF’s unconventional EBIT to drop to a loss of more than 2.6 billion euros, a deterioration of almost 4 billion euros compared to the value from the same quarter of the previous year. The bottom line is that BASF’s quarterly results fall by more than 3 billion euros and are in the red at 2.1 billion euros – which is worse than expected by experts.

For 2020 as a whole, BASF is forecasting a decline in sales in the range between EUR 57 billion and EUR 58 billion. Adjusted earnings before interest and taxes are expected to decrease from EUR 4.6 billion to EUR 3.0 billion to EUR 3.3 billion. “In addition to the decline in demand, the company expects continued pressure on margins, especially for basic chemicals, which is partially offset by savings in fixed costs,” the company said on Friday afternoon.

At a glance – chart and news: BASF

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