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Multinational Chemical Companies Are Rebounding, And Basf's Earnings In 2017 Are Well Ahead Of Expectations.
Apr 12, 2018

The Latest News: http://money.163.com/18/0120/11/D8JE8LG6002580S6.html


In 2017, the chemical industry rebounded, and the sales and product sales of all major chemical companies rose, which led to the reality of the recovery.


In the first half of 2017, due to the global chemical raw materials prices, giant have realized their business growth, sales growth and the change of the exchange rate for many enterprises also have played a positive role.

The first finance and economics, the reporter learns from the aspects of basf, the company expects sales, excluding special items before interest and tax revenue and earnings before interest and tax will be significantly higher than that of last year's level, yield performance far beyond analysts' expectations.

Of basf, annual sales of 64.5 billion euros, compared with 2016 in 57.6 billion, the euro rose 12%, excluding special items of earnings before interest and tax are expected to reach 8.3 billion euros, rose 32% from a year (2016:6.3 billion).

In the first financial reporter noticed, basf year-on-year revenue growth is mainly thanks to performance chemicals business benefits: high monomer, oil, chemicals and intermediates sales department sales and profit are the main factors.

The sharp rise in oil and gas and other business areas has also boosted basf's remarkable growth in interest and tax earnings excluding special projects.

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But not all business sectors have bright eye, the characteristics of products, functional materials and solutions in the field of business excluding special items before interest and tax revenue is lower than 2016 levels, basf attributed poor profit to improve the sales price does not fully compensate for the influence of the rising prices of raw materials;

And the fixed costs associated with the start-up of the new device.

As a result of the fourth quarter earnings surge, the agricultural solutions business sector, excluding special items, had a flat rate of earnings before interest and tax.

In all of 2017, basf group's expected earnings before interest and tax rose 36 percent to 8.5 billion euros (2016:6.3 billion euros).

Net profit is expected to rise 50% from 2016 to about 6.1 billion euros (euro 4.1 billion in 2016).

With the us corporate tax rate cut to 21 per cent from 35 per cent, a one-off non-cash deferred income tax of about 400 million euros in the fourth quarter of 2017.

In all of 2017, basf group's expected earnings before interest and tax rose 36 percent to 8.5 billion euros (2016:6.3 billion euros).

Net profit is expected to rise 50% from 2016 to about 6.1 billion euros (euro 4.1 billion in 2016).

With the us corporate tax rate cut to 21 per cent from 35 per cent, a one-off non-cash deferred income tax of about 400 million euros in the fourth quarter of 2017.

Coxtron, another materials maker that was born out of the chemical giant bayer, also continued its positive momentum in the first half of 2017, creating the strongest quarter in the company's history in the third quarter of 2017.

Net income rose 89.6 percent to 491 million euros from the third quarter of last year.

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As Andrew Liveris, dow's chairman and chief executive, has said, the global economy is becoming more active, with manufacturing, investment and trade showing significant advantages.

After the first financial journalist interviews with several companies, many companies also agree with this view, the downstream products of the chemicals such as automotive, infrastructure, consumer care, electronics and agriculture and so on are all recovered.

As basf announced a series of new investments in China.

At present, a new world class automotive paint production facility with a total investment of 140 million euros was completed and put into operation in Shanghai chemical industrial zone in caojing.

While its world-class chemical catalyst production plant has officially opened in Shanghai, the first finance and economics, the reporter learns from the aspects of basf, the basf in the first set of chemical catalyst production plant in the region.

The bullish Chinese market is basf's consistent strategy.

Basf for China and Asia Pacific President Dr KeDiWen (Dr. Stephan Kothrade) in earlier to the first finance and economics, in an interview with reporters, basf has will production network to expand to the western region of China to korla in xinjiang, and gradually improve chongqing diphenyl methane diisocyanate (MDI) and China petrochemical production base, and common construction of guangdong maoming nonyl alcohol capacity utilization (INA) production base.

In an exclusive interview with the first financial reporter, Bjoern Skogum, President of coase China, said the Chinese market had become the engine of the company's growth.

Coase has been investing heavily in China.

As of now, kosi has been built in Shanghai fengxian district with a total value of 3.1 billion euros, which is about to start the next innovation and development and marketing application.

Coxtron has not only moved the global headquarters of polycarbonate in the group's three major businesses to Shanghai, but also located the Asia Pacific research and development center in Shanghai.

"We will continue to invest more in caojing," he told the financial times.