BASF: Outlook tough as earnings dip

BASF posted second-quarter profit yesterday that missed analyst estimates and the biggest chemical company said it now looked more difficult to meet annual targets amid pressure on prices. The shares fell as much as 5 percent, the most in 20 months, as earnings before interest, tax and one-time items fell 5.4 percent to E1.83 billion (R23.5bn). Chief executive Kurt Bock, who is cutting 940 jobs, said he saw potential for annual cost cuts to exceed the E1bn a year planned by 2016. Oliver Schwarz at Warburg Research said: “It doesn’t look that pretty.” – Bloomberg