FRANKFURT (Reuters) -German chemicals giant BASF said on Friday it was facing high levels of uncertainty from U.S. tariffs and other countries’ reactions to them, but reaffirmed its earnings guidance for lack of clearer economic indicators.
The threat of trade duties was prompting customers to order more cautiously overall, finance chief Dirk Elvermann said in an analyst call. “We are maintaining our outlook because the assumptions that we have taken can’t be replaced by better assumptions,” he added.
BASF’s shares fell 2% to a one-week low at 0735 GMT after the company also reported that adjusted EBITDA slipped 3.2% in the first quarter to 2.63 billion euros ($2.98 billion), slightly below market expectations.
Net income in the period from January to March dropped 41% to 808 million euros. The firm attributed this in part to a disposal loss, which it previously put at around 300 million euros, from selling a stake in a wind farm project due to lower energy needs in Europe.
The group reiterated it was targeting 2025 earnings before interest, taxes, depreciation and amortisation (EBITDA) and adjusted for one-off items of between 8 billion euros and 8.4 billion euros, up from 7.9 billion euros last year.
Among positive developments, Elvermann said demand for agricultural products was perking up, there was an improved business sentiment in China and lower oil prices were providing cost relief.
BASF, which is holding its annual investor meeting on Friday, said in March it would sell its 49% stake in two planned North Sea wind farms back to the original owner Vattenfall while retaining the Swedish utility as a renewable power supplier.
($1 = 0.8830 euros)
(Reporting by Ludwig Burger and Patricia Weiss; Editing by Rachel More and Freya Whitworth)
