Frankfurt | Reuters—Germany’s BASF said on Friday that it was lowering its full-year outlook, citing weaker-than-expected global economic growth and reduced demand for its chemicals due to U.S. tariffs.
The Ludwigshafen-based chemical giant had already warned that it was facing high levels of uncertainty from U.S. tariffs and the potential backlash from other countries, cautioning that the threat of trade duties was prompting customers to order more cautiously overall.
Why it matters: BASF is a key supplier of crop protection products for Canadian farmers.
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In an unscheduled release of preliminary results on Friday, BASF said that earnings before interest, taxes, depreciation and amortization (EBITDA), before special items, would likely be between 7.3 billion euros ($C11.67 billion) and 7.7 billion euros in 2025.
That is a reduction from its previous outlook of between 8.0 billion euros and 8.4 billion euros.
“Global gross domestic product is projected to grow less in 2025 than previously assumed. This development is essentially attributable to the U.S. tariffs,” it said.
“In 2025, market demand for chemical products will likely grow less than previously expected,” the company added.
The company also announced that second-quarter operating profit declined 9.7 per cent, in line with market expectations.
EBITDA before special items dropped to 1.77 billion euros, right in line with consensus posted on the company’s website, but lower than the 1.96 billion euros generated a year earlier.
—Reporting by Ludwig Burger and Tom Sims
