Low water levels in the Rhine affect BASF results
26/10/2018
Earnings fell, however, reaching €1.5 billion, a drop of 14% year on year.
In BASF’s functional materials & solutions segment, sales rose by 5% compared with the third quarter of 2017 to reach €5.2 billion. But gross earnings of €347 million were considerably below the level of the same quarter last year, mainly because of higher fixed costs and lower margins in almost all divisions.
To explain the decrease in profits, BASF chairman, Dr Martin Brudermüller, pointed to “some special factors” in the third quarter.
He said BASF’s profits had been affected by the acquisition of significant businesses and assets from rival chemicals group Bayer. But he also said that low water levels in the River Rhine had an impact on business. “Throughout the entire third quarter, we had to struggle with this,” said Dr Brudermüller, “which led to production cutbacks and higher transportation costs.”
He also pointed out that the challenges in the macroeconomic environment are growing.
Image shows the BASF site at Ludwigshafen, on the River Rhine.
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