BASF lifts profit guidance again on higher chemicals prices – Reuters

A bicyclist rides past the entrance of a BASF plant in Schweizerhalle near Basel, Switzerland, July 7, 2009. REUTERS/Christian HartmannFRANKFURT, Oct 27 (Reuters) – Germanys BASF (BASFn.DE) increased its 2021 profits assistance on Wednesday for the third time as its big industrial customers readily accepted marked-up prices for basic chemicals amidst a raft of worldwide materials shortages.The worlds biggest chemicals maker by sales said in a declaration it now anticipated 2021 profits before interest and tax (EBIT), adjusted for unique items, to come in at between 7.5 billion and 8 billion euros ($ 8.7-$ 9.3 billion), compared to a previous projection for 7.0 billion to 7.5 billion euros.Adjusted operating revenues in the third-quarter, when a summertime lull generally dampens need in the sector, jumped to 1.87 billion euros, up from 581 million euros in the pandemic-stricken year-earlier duration and beating the 1.8 billion anticipated usually by analysts.A 42% surge in group earnings to 19.7 billion euros was fuelled by price boosts of 36% on average.The upswing came even as a shortage of microchips in the car sector and power cuts in China were a drag on demand.” Growth momentum slowed compared with the previous quarter due to supply traffic jams in numerous worth chains of the production sector,” the company said.While benefiting BASFs fundamental chemicals systems, the global product shortages and higher procurement costs proved a problem on BASF businesses that make more advanced products such as farming pesticides, coatings and dietary supplements, where margins and earnings slipped.Reporting by Ludwig Burger
Editing by Riham Alkousaa and Emma ThomassonOur Standards: The Thomson Reuters Trust Principles.

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