BASF Profit Boosted by Chemicals Business

By Christopher Alessi

LUDWIGSHAFEN, Germany--Germany's BASF SE (BAS.XE) said Friday that net profit more than doubled in the fourth quarter of 2016, boosted by growth at its chemicals businesses, while offering cautious guidance for the current year.

Net profit for the quarter ended Dec. 31 was 689 million euros ($728.84 million), compared with EUR339 million during the same period a year earlier. It beat analysts' forecasts of EUR624 million, according to a poll by The Wall Street Journal.

Profitability was also up year-on-year due to impairment charges of roughly EUR600 million at the oil-and-gas unit that weighed on net profit during the fourth quarter of 2015.

For 2017, the company said it expects "considerable" sales growth of at least 6%, compared with EUR57.55 billion last year. It also forecasts a "slight" increase of between 1% and 10% in earnings before interest and taxes before special items, up from EUR6.31 billion in 2016.

Quarterly sales rose by 7%, to EUR14.85 billion, a result of a higher volumes at the chemical businesses.

-Write to Christopher Alessi at [e-mail]

(END) Dow Jones Newswires

February 24, 2017 01:29 ET (06:29 GMT)

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