This week, the European stock market has been jittery ever since a German chemicals firm, BASF, warned the market that its profits would come in lower than expected.
Why is BASF dominating the business headlines this week?
The Mannheim-founded company, which makes everything from plastics to chemicals to boost crop growth, issued a profit warning late on Monday evening, sending waves through the global economy.
What was the news?
BASF slashed its full-year profit forecast for 2019 by up to 30 per cent, adding that its profits would be half of what was previously predicted in the second quarter of the year.
It also expects a “slight decline” in sales, compared with its previous projection for growth of 1-5 per cent. A year-on-year decline in sales means the firm is also likely to press on with making 6,000 job cuts.
The gloomier outlook followed “considerably weaker-than-expected business development in the second quarter of 2019 and the slowdown in global economic growth and industrial production, mainly due to the trade conflicts,” the company said in a statement.
Why did it make such an impact?
As mentioned, it makes chemicals, plastics and foams which are used Read More
Source:: iNews – Business