The results of the German chemical group BASF fell sharply in the second quarter, due to lower demand for its products from the car industry due to the corona crisis. BASF reported this on the basis of provisional figures. The company also suffered from the drop in oil and gas prices.
In the past period, turnover amounted to 12.7 billion euros, compared to 14.5 billion euros a year earlier. That is a decrease of more than 12 percent. The automotive industry is the main market for BASF. The operating result was EUR 226 million compared to EUR 995 million last year. According to BASF, that figure was higher than expected by analysts.
The company is counting on a net loss of 878 million euros, due to a large write-off on its majority interest in oil and gas company Wintershall DEA due to the lower energy prices. In the second quarter of 2019, a net profit of 5.9 billion euros was realized, helped by a large book profit.
BASF will release full figures on July 29.