UPDATE 1-BASF lifts profit guidance again on higher chemicals prices – Reuters

A cyclist trips past the entryway 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 earnings assistance on Wednesday for the third time as its large industrial consumers readily accepted marked-up rates for fundamental chemicals amid a raft of worldwide products shortages.The worlds biggest chemicals maker by sales said in a declaration it now expected 2021 incomes before interest and tax (EBIT), adjusted for special items, to come in at between 7.5 billion and 8 billion euros ($ 8.7-$ 9.3 billion), compared to a previous forecast for 7.0 billion to 7.5 billion euros.Adjusted operating incomes in the third-quarter, when a summer lull usually dampens demand in the sector, jumped to 1.87 billion euros, up from 581 million euros in the pandemic-stricken year-earlier period and beating the 1.8 billion anticipated usually by analysts.A 42% rise in group revenues to 19.7 billion euros was sustained by rate boosts of 36% on average.The upswing came even as a scarcity of microchips in the vehicle sector and power cuts in China were a drag on demand.” Growth momentum slowed compared with the previous quarter due to provide traffic jams in lots of value chains of the production sector,” the company said.While benefiting BASFs fundamental chemicals systems, the global product shortages and greater procurement costs proved a burden on BASF companies that make more advanced items such as farming pesticides, coverings and nutritional supplements, where margins and profits slipped.Reporting by Ludwig Burger
Editing by Riham Alkousaa and Emma ThomassonOur Standards: The Thomson Reuters Trust Principles.

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