BASF SE (BASFY)

[TRUISM]

BASF profit boosted by specialty chemicals
July 24, 2014, 2:12 a.m. EDT By? Chase Gummer

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FRANKFURT-German chemicals giant BASF SE said Thursday that second-quarter net profit jumped 12%, boosted by its industrial and specialty chemicals division, despite a deteriorating global economic outlook and heightened geopolitical risks.

Net profit in the quarter rose to €1.3 billion ($1.75 billion) but fell short of analysts' expectations of €1.45 billion. Revenue increased 1% to €18.5 billion in the second quarter as currency pressure continued to weigh, while earnings before interest and taxes, before special items, rose 9% to €2.71 billion.

BASF confirmed its outlook for the full year but said it now expects weaker global economic growth than it did six months ago, primarily due to rising geopolitical risks.

"We stand by our outlook for 2014 despite even more unfavorable currency developments and increased political risks," said Chief Executive Kurt Bock.

The company said it expects the divestment of its gas trading and storage business through an asset swap with Russian gas giant Gazprom to be slightly delayed and implemented sometime in the fall of 2014.

"The complex legal unbundling process involving the establishment of new companies in Russia, the Netherlands and Germany is taking longer than initially anticipated," said Chief Financial Officer Hans-Ulrich Engel.

On Wednesday rival Dow Chemical Co. posted better-than-expected revenue helped by growth in all segments.





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