Earnings Preview: BASF 3Q Results

GEORGE FREY

FRANKFURT (AP) — German chemical company BASF SE reports earnings for its third quarter Oct. 29. The following is a summary of key developments and analyst opinion related to the period.

OVERVIEW: BASF, based in Ludwigshafen, is the world's biggest chemical company with revenue of euro62 billion ($93 billion) and net profit near euro3 billion in 2008.

A preliminary earnings statement from the company earlier this month said sales for the July-September quarter were euro12.8 billion ($18.95 billion) — down 19 percent from a year earlier but 2.4 percent higher than in the second quarter. BASF did not provide preliminary net income figures.

The company says demand has fallen sharply in recent months as global production of manufactured goods like cars has choked off demand for paints, adhesives and rubber at its chemicals division. Falling energy demand has led to declines at its Wintershall division which explores for and refines oil and natural gas.

Furthermore, the company is experiencing integration costs related to the purchases last year of Norwegian energy exploration company Revus Energy ASA, and Swiss chemical company Ciba Holding AG.