The German chemical company BASF clearly suffers from the trade dispute between the economic superpowers US and China. Among other things, the company faced delays in its US operations in the past quarter. There was still growth in China, but to a lesser extent than before.
BASF is also feeling the continuing slowdown in the automotive sector and lower performance of German industry. All in all, the turnover of the company was 2 percent lower in the third quarter at 15.2 billion euros. Net profit fell by from 1.2 million euros last year to 911 million euros now. The contributions to the profit of the Matrials and Chemicals segments in particular were significantly less. Nevertheless, this result was higher than expected on average.
The results of the Agricultural Solutions division of BASF gave the trading update some sparkle. BASF previously allocated 8 billion euros for the takeover of the agri-division of competitor Bayer. At this branch there was 26 percent sales growth, also due to good performances in South America, the Middle East and Africa.
Peretz M. is an accomplished economist and financial journalist with a deep understanding of the global economy and financial markets. He is a regular contributor to EconomicInform, where he provides expert analysis and commentary on current economic trends and events. With a strong educational background in economics, Peretz has a talent for breaking down complex economic concepts for a general audience and is able to provide insightful perspectives on a wide range of economic issues.