By Steve Goldstein
BASF, the German chemicals giant, warned on Friday of a big write-down due to declining demand in the automotive and aviation industries.
BASF /zigman2/quotes/209015666/delayed XE:BAS +0.63% said it will lose €2.12 billion in the third quarter, mostly due to a €2.8 billion write-down.
“The impairments were largely the result of weaker demand from the automotive and aviation industries, which impacted the Surface Technologies segment in particular, and a continued oversupply of basic chemicals, which put pressure on margins in the Chemicals and Materials segments. In addition, impairments were recognized in the Agricultural Solutions segment as part of measures to streamline the production network,” said the company.
BASF said sales fell 5% to €13.81 billion.
For the fourth quarter, BASF said its earnings before interest and tax, excluding special items, will top third-quarter levels and top analyst estimates.
BASF shares dropped over 3% in Frankfurt.