Virus Hits Earnings At German Chemicals Group BASF
Umer Jamshaid Published January 20, 2021 | 03:50 PM
Frankfurt am Main, (UrduPoint / Pakistan Point News - 20th Jan, 2021 ) :German chemicals giant BASF said Wednesday it expected to swing to a loss for 2020 due to the coronavirus pandemic but it still beat expectations as it recovered in the final quarter.
The Ludwigshafen-based company said that its full-year operating loss would be 191 million Euros ($232 million) compared with a profit of 4.2 billion euros in 2019, based on preliminary figures.
The coronavirus outbreak has hit a swathe of industries in which BASF is a crucial part of the supply chain -- from aviation to car manufacturing.
The 2020 loss was, however, "better than expected by analysts on average", BASF said.
The company blamed writedowns and "provisions for restructuring" in the third quarter, when it slumped to a to a 2.6 billion euro operating loss, for its full-year figures.
BASF said in July it would shed 2,000 jobs by the end of 2022 that would save it 200 million euros annually by 2023.
Yet the company rebounded in the final three months of the year, as operating profit rose more than 60 percent year-on-year to 932 million euros.
The company's performance materials, petrochemicals and performance chemicals divisions exceeded expectations, BASF said.
The upturn in the car industry and rebound in the Chinese economy towards the end of the year also helped BASF's recovery in the period.
Sales across the year reached 59.1 billion euros, only slightly down on 2019's 59.3 billion euros, but above the company's own expectations of 57-58 billion euros.
In February 2020, before coronavirus restrictions closed factories and businesses, BASF had hoped to boost its sales to 60-63 billion euros.
Shares in BASF at 0930 GMT climbed 2.0 percent in Frankfurt compared with a rise of 0.6 percent in the DAX index as a whole.
Related Topics
Recent Stories
185 held for violating 'roti' price orders in 6 days
Record-setting Duplantis lights up Xiamen, Richardson upset
Dry weather to prevail in most parts of country:PMD
Open letter to customers from Sir Tim Clark, President Emirates Airline
4th Int'l Public Health Conference concluded
DG SBCA says launching one window operation soon besides setting up complaint ce ..
Heavy rain and hailstorm paralyse life in Hazara division
RoboTec 24 kicked off in Mechatronics Department Hayatabad
Commissioner orders 100pc recovery of DMC fee from defaulters
Police arrest two wanted criminals: SSP Larkana
Commissioner for comprehensive strategy against measles as 203 cases detected
Anti-Narcotics Force (ANF) recovers 39 kg drugs in nine operations
More Stories From Miscellaneous
-
Transforming education sector: from job hunters to job creators
1 day ago -
Amjad Bobby remembered on 19th death anniversary for timeless contributions to music
5 days ago -
Legendary actor Nadeem’s 26 films released on Eid-ul-Fitr days in 50 years
6 days ago -
Besant Hall Cultural Centre to celebrate evening with Sanam Marvi on 26 April
6 days ago -
Radio Bahawalpur presents program “Eidi Shidi”
9 days ago -
Radio Bahawalpur to broadcast Eid programs
11 days ago
-
DC, DPO Haripur inspect bus terminals to review fares compliance
13 days ago -
Second phase of refugees’ repatriation to start after Eidul Fitr vacations
13 days ago -
Reaping bounties as Ramazan culminates
13 days ago -
Digital transformation – a boon or bane
13 days ago -
Plants’ business: Another casualty of climate change
15 days ago -
Eid shoppers prioritize children’s joy over personal comforts
15 days ago