FRANKFURT, Oct 27 — German chemical giant BASF raised its outlook for 2021 again today, the third time it has done so this year, on the back of high demand for its products and higher prices.
The group, based in Ludwigshafen, sees revenues sitting between €76-€78 billion (RM366-RM376 billion) in 2021, up from an estimated range of €74-€77 billion.
In terms of operating profit, a measure closely watched by investors, the result should end up between €7.5-€8 billion, a notch higher than the previous target of €7-€7.5 billion euros.
The improved outlook comes as global supply bottlenecks and other coronavirus-related disruptions slow production in the manufacturing sector.
From July to September, the group booked a net profit of €1.4 billion, after significant losses in excess of €2.1 billion in pandemic-blighted 2020.
BASF, whose chemicals are used in pharmaceuticals, cleaning products, food and agriculture, saw sales increase by 42 per cent in comparison with the previous year to €19.7 billion.
The company “increased prices by 36 per cent and volumes by six per cent” over the same quarter last year, BASF board chairman Martin Brudermueller said in a statement.
The chemical giant’s operating profit in the quarter rose to €1.9 billion, up from €581 million the previous year, driven by sales in its chemicals and materials business. — AFP