German chemicals giant BASF raised its 2026 outlook for the second time this year on Wednesday after raising prices for some products following the outbreak of the Iran war.
The maker of products ranging from automotive paints to sunscreen ingredients now expects a core profit of €7.4billion to €7.8bn ($8.2bn to $8.7bn) this year, up from a previous forecast of €6.9bn to €7.7bn.
BASF’s earnings have been boosted after it hiked prices for some goods in March by up to 30% in response to surging costs for energy and other raw materials because of the US-Israeli war against Iran.
The company said Wednesday that its core profit in the third quarter rose 15% from the same period last year to €1.6bn.
Overall sales were up 14% over the period at €16.4bn.
“The increase was mainly driven by considerably higher prices (plus 12%) and slightly higher volumes (plus 2%),” the company said in a statement.
The results come as the European chemicals industry is under major pressure from high energy prices and increasingly intense competition from Asian rivals.
BASF is undertaking a major restructuring, cutting thousands of jobs at its historic German headquarters in Ludwigshafen, after opening a major chemical complex in China earlier this year to serve Asian markets.
The company is also exploring the multibillion-euro acquisition of its German rival Evonik, saying the combination could let it obtain feedstocks and precursor chemicals at lower cost.
Source: www.euronews.com
