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BASF shares jump after earnings rise more than forecast
Oct 14, 2009, 10:48 GMT
Frankfurt - Shares in the world's biggest chemicals group BASF AG jumped by 6.5 per cent Wednesday after the company said growth in Asia helped boost sales in the third quarter.
In a preliminary set of figures, BASF said third quarter sales rose by 2.4 per cent compared to the three months to the end of June.
'Impulses for growth are coming from Asia, especially China, as well as from parts of South America,' said BASF chief Juergen Hambrecht.
But underscoring the impact of the global recession on the company's business operations, BASF said its third-quarter earnings before interest and tax from operations fell 20 per cent to 1.25 billion euros (1.86 billion dollar) compared with the same period in 2008.
However, third-quarter earnings rose by 9.5 per cent from the second-quarter. The third-quarter earnings were also better than the about 900 million euros forecast by analysts.
By late morning trading in Frankfurt, BASF shares were trading up more than 6 per cent at 40.15 euros.
Third-quarter sales fell 19 per cent to 12.8 billion euros compared with the same quarter last year.
'Although the mood is slightly brighter and we are climbing out of the trough, the recovery remains slow and fragile,' said Hambrecht.
BASF is scheduled to release its full results on October 29.
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