BASF slashes second quarter, full year profit outlook

FRANKFURT (Reuters) - German chemicals giant BASF on Monday warned profit would fall 47% in the second quarter and slashed its forecast for 2019, blaming a global slowdown in economic growth and industrial production.

In particular, the company cited a slowdown in automotive demand, particularly in China, and poor weather conditions in North America that hurt sales in the agricultural sector. The ongoing U.S.-China trade dispute also weighed on results, it said.

Full-year earnings before interest and taxes (EBIT) excluding special items are expected to be up to 30% below 2018 levels, the company said.

Second-quarter sales were down 4% to 15.2 billion euros ($17.04 billion), and earnings before interest and taxes before special items are expected to fall 47% to 1 billion euros. The company is due to report second quarter results on July 25.

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Group second-quarter EBIT is expected to tumble 71% to 500 million euros.

BASF, a maker of petrochemicals, coatings, and catalytic converters, last month said it was aiming for growth in 2019 operating profit at the lower end of a 1-10% range, even as analysts predicted a decline in full-year earnings.

BASF is planning to cut 6,000 positions by 2021 as part of a cost reduction plan.

(Reporting by Edward Taylor, editing by Deepa Babington)

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