BASFY BASF SE (QX)

   By Nathan Allen 
 

BASF SE (BAS.XE) trades lower Monday morning as investors respond to a profit warning issued after market close on Friday.

The German chemical producer warned that it now expects a 15% to 20% decrease in 2018 earnings before interest and taxes before special items, compared with previous guidance of a slight decline.

Low water levels on the River Rhine are set to reduce fourth-quarter earnings by around 200 million euros ($227.5 million) the company said. BASF also pointed to a sharp decline in prices for isocyanate--a material used in the production of polyurethanes--weak steam-cracker margins and lower demand from the automotive industry.

At 0852 GMT BASF was trading 4% lower at EUR58.27 having earlier fallen as low as EUR57.35.

Analysts at Jefferies said the headwinds were likely to continue into the first half of 2019 and weigh on BASF's valuation.

Baader Helvea analyst Markus Mayer said consensus estimates for the company's earnings are still far too high and need to be cut by more than 10% for 2018, 2019 and 2020.

Write to Nathan Allen at nathan.allen@dowjones.com

(END) Dow Jones Newswires

December 10, 2018 04:17 ET (09:17 GMT)

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