BASF Lifts Full-Year Profit Guidance to €7.8B After Iran War Price Hikes

BASF raised its full-year core profit forecast to €7.4 billion to €7.8 billion ($8.2 billion to $8.7 billion), up from a previous range of €6.9 billion to €7.7 billion, after the German chemicals maker raised prices for some goods by up to 30% in March in response to surging energy and raw material costs tied to the US-Israeli war against Iran. The company said Wednesday that third-quarter core profit rose 15% year over year to €1.6 billion, while overall sales climbed 14% to €16.4 billion. BASF attributed the increase mainly to considerably higher prices, up 12%, and slightly higher volumes, up 2%. The results arrive as the European chemicals industry faces pressure from high energy prices and intensifying competition from Asian rivals. BASF is cutting thousands of jobs at its Ludwigshafen headquarters following the opening of a major complex in China earlier this year, and is exploring a multibillion-euro acquisition of German rival Evonik.