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BASF Slips To Loss In Q2 - Quick Facts

German chemical company BASF Group (BFA.L,BASFY.PK) reported that its second-quarter net loss was 878 million euros or 0.95 euros per share, compared to net income of 5.95 billion euros or 6.48 euros per share in the second quarter of 2019.

In the latest-quarter, the company incurred a non-cash-effective impairment of its shareholding in Wintershall Dea. Lower long-term scenarios for oil and gas prices and changed reserve estimates resulted in an impairment of 819 million euros. In the prior-year quarter, net income included a book gain of 5.7 billion euros on the deconsolidation of Wintershall.

Earnings per share adjusted for special items and amortization of intangible assets were 0.25 euros, compared to 0.83 euros in the previous year.

Income from operations (EBIT) before special items was 226 million euros, 77 percent below the level of the second quarter of 2019.

Sales declined by 12 percent year-over-year to 12.68 billion euros, due to lower sales volumes resulting from lockdowns.

For the third quarter, BASF does not expect EBIT before special items to improve significantly compared with the second quarter of 2020, in part due to the generally lower demand in August and the seasonality of the Agricultural Solutions business.

The company said it still does not make any concrete statements on the development of sales and earnings for the full year 2020.

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