German chemical giant BASF keeps outlook, warns on tariffs
Source: AFP
German chemicals giant BASF stuck to its 2025 earnings outlook on Friday, despite the turmoil unleashed by hardline US trade policies, but warned of high levels of uncertainty.
The company, a crucial supplier for the automobile, agriculture and construction sectors, said it was "more resilient than others" when it came to US tariffs due to its focus on producing locally.
In the United States, more than 80 percent of the group's sales came from products manufactured in the country, it said.
But the group warned: "The volatility of the tariff announcements and the unpredictability of other decisions by the United States, as well as possible countermeasures by trading partners, are causing a high level of uncertainty."
Chief financial officer Dirk Elvermann said BASF had to consider indirect impacts of tariffs due to potential changes in demand in industries such as automotive and consumer goods.
It was currently hard to assess the full impact, he added.
Despite the uncertainty, BASF maintained its outlook for 2025, forecasting earnings before special items (EBITDA) of between 8.0 billion and 8.4 billion euros ($9.1 billion and $9.5 billion) for 2025.
US President Donald Trump has unleashed a barrage of tariffs on allies and adversaries alike.
Apart from China, the highest levies have been paused for now to allow for talks with trading partners -- but a baseline 10-percent tariff is still in effect.
BASF also reported on Friday a 40-percent fall in first quarter net profit to 808 million euros. The group blamed the drop, which was slightly worse than expected, on rising competition.
Its shares were down 1.52 percent at 0900 GMT.
The chemicals sector in Europe's biggest economy has been hit hard in recent years due to higher energy costs in the wake of Russia's invasion of Ukraine and strong Asian competition.
Speaking to shareholders, CEO Markus Kamieth said BASF wanted to grow in Asia, pointing to a new site under construction in Zhanjiang in southern China.
"Asia remains the growth driver for the chemical industry. China in particular," he said.
BASF has previously announced plans to make massive savings, including through job cuts at its Ludwigshafen site in Germany.
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Source: AFP
