German chemicals giant BASF has issued a profit warning after sales in the third quarter of 2015 dipped 5 percent year-on-year.
Due to “a weaker than expected market environment,” BASF recorded sales of 17.4 billion euros. The firm said it expected a further decrease in sales and earnings before interest and taxes (EBIT).
Earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 358 million euros to 2.9 billion euros. In contrast, income from operations (EBIT) before special items declined by 171 million euros to 1.6 billion euros.
In the chemicals segment, EBIT before special items rose slightly, while it increased sharply in the functional materials and solutions sector.
The firm said that in the remaining sectors, “earnings declined significantly.” Agricultural solutions dropped by 27 percent.
BASF added that the “subdued economy, oil price decline and asset swap with Gazprom” will impact sales and earnings in the fourth quarter.
The number of employees working at BASF as of Sept. 30 dropped to 112,981 from 113,351, 12 months previously.
Earlier this month, BASF underlined its commitment to its headquarters in Ludwigshafen, Germany, by agreeing a new five-year deal at the site.
BASF also announced that it would spend at least 6 billion euros on investments, upgrading and maintenance measures in Ludwigshafen for that five-year period.
