FRANKFURT (Reuters) -German chemicals maker BASF on Wednesday said quarterly adjusted operating profit slipped 4.8% but came in slightly better than expected as higher sales volumes were partly offset by negative currency effects and lower prices.
Third-quarter adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) fell to 1.54 billion euros ($1.80 billion), when including the coatings business that it agreed to sell this month.
That slightly surpassed average market expectations for 1.5 billion euros, based on an analyst consensus posted on the group’s website.
BASF said it had to mark down prices in areas such as basic chemicals, materials for industrial use and agricultural products, with only its Surface Technologies and Nutrition & Care units being able to charge higher prices.
“Customer buying behaviour in almost all industries and regions remained cautious,” said CEO Markus Kamieth.
BASF adjusted its full-year guidance to account for the coatings unit that is to be sold, predicting EBITDA before special items of between 6.7 billion and 7.1 billion euros.
Kamieth has embarked on a push to exit or separate businesses that are not closely integrated and physically connected within the group’s sprawling chemical plants across the globe.
BASF moved this month to sell a 60% stake in its coatings business to private equity firm Carlyle and the Qatar Investment Authority, for a 5.8 billion euros cash payment.
That has enabled it to bring a previously announced share buyback programme forward.
(Reporting by Ludwig Burger, Editing by Kirsti Knolle)
