BASF, the world's largest chemical company by sales, warned investors of a drop in operating income this year on weak chemical sales volumes in China and as the lower crude price weighs on its oil and gas division. Earnings before interest and tax (EBIT), adjusted for one-off items, will decline slightly this year, BASF said on Friday.
In China, where it makes about 8 percent of group sales and operates a petrochemicals and specialty chemicals joint venture, BASF expects economic growth to continue to decelerate slightly. With crude oil trading about one third below year-earlier levels, it sees a significant drop in earnings at its Wintershall oil and gas division.
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