BASF 2Q Profit Drops Slightly as Revenue Edges Up

   By Nathan Allen

BASF SE's (BAS.XE) second-quarter net profit dropped around 1% on year, as revenue edged up slightly, the chemical company said Friday.

Net profit was 1.48 billion euros ($1.73 billion), down from EUR1.50 billion a year earlier, the company said. Sales rose 3% to EUR16.78 billion from EUR16.26 billion, BASF said.

A consensus compiled by FactSet pegged profit at EUR1.62 billion on sales of EUR16.47 billion.

Earnings before interest and taxes at BASF's functional materials and solutions segment, which makes products for the automotive and construction industries, dropped 24% after taking a hit from unfavorable currency swings, higher fixed costs and increased raw material prices, the company said.

EBIT at the group's oil-and-gas unit more than doubled on higher prices for hydrocarbons, BASF said.

The group confirmed its 2018 guidance for slight sales and earnings growth but Chief Executive Martin Brudermueller sounded a cautious note about the macroeconomic situation.

"Global economic risks increased significantly over the course of the first half of 2018. We are monitoring these developments and the potential effects on our business very closely," he said.

Write to Nathan Allen at nathan.allen@dowjones.com

(END) Dow Jones Newswires

July 27, 2018 01:39 ET (05:39 GMT)

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