BASF: stock hit on heavy quarterly loss
(CercleFinance.com) - The BASF share is down over 4% in Frankfurt on Wednesday after publishing a higher-than-expected quarterly loss, as a series of impairment charges weighed on its results.
The group made a net loss of 2.1 billion euros in Q3, or 2.31 euros per share, compared with a profit of 911 million euros, or 1 euro per share, a year ago.
The German chemical group explains that it had to set aside nearly 2.8 billion euros in "non-cash" provisions to take into account the effects of the coronavirus epidemic and ongoing restructuring measures.
Excluding extraordinary items, BASF posted EBIT of 581 million euros, down 45% from the profit of almost 1.1 billion euros reported last year.
Meanwhile, sales fell by 5% to 13.8 billion euros, mainly due to the fall at its agricultural and surface technology divisions.
Commenting on its outlook, BASF still says it anticipates a "slight" decline in FY 2020 sales due to the Covid-19 pandemic, accompanied by a "considerable" drop in EBIT before exceptional items.
In Frankfurt, the BASF share is down over 4% on Wednesday morning, while the DAX index is down about 3%.
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