- BASF (OTCQX:BASFY +0.3%) says it expects Q2 EBIT before special items will plunge 77% from a year ago to €226M, but that's better than analyst consensus of €146M, according to a consensus compiled by the company, despite a steep slump in demand from auto companies.
- BASF says the decline is due to significantly lower earnings in its Materials, Surface Technologies, Chemicals and Industrial Solutions segments.
- The company also expects a net loss of €878M, a sharp swing from a year-earlier net profit of €5.95B, partly due to an €800M impairment at its Wintershall-DEA subsidiary related to lower oil and gas prices.
- Q2 revenues are expected to fall ~12% to €12.7B, beating the average estimate for €11.8B.
- BASF shares recently were downgraded to Sell at Warburg Research on expectations of lower than planned FY 2020 sales of the dicamba weedkiller.