German chemical producer BASF said Friday expectations of a weaker global economy meant global chemical production would grow by just 4% this year and next, down from its previous estimate of 4.4% and 4.9% respectively.
Announcing in third quarter financial results that it would miss its 2015 sales target, the Ludwigshafen-based company said it now expected average annual growth of domestic product to hit 2.6% for 2015, down 0.8% on a previous forecast.
For this year it said it expected global growth to hit 2.3%, down 0.2 percentage points.
Kurt Bock, chairman of BASF’s board of directors said: “The reasons for this weak global economic development are obvious: reduced growth dynamics of emerging markets and a delayed recovery in the European economy.”
The company said it would not achieve its 2015 financial target to reach sales of Eur80 billion ($101 billion) and EBITDA of Eur14 billion.
It said it expected EBITDA to be in the region of Eur10-12 billion.
Demand for chemicals, including downstream plastics, are closely correllated to economic growth, which has slowed in Europe this year under the lingering weight of debt and austerity.
– Platts.com
