BASF cut its outlook for 2015, providing the latest sign that a weakening global economy is damaging the growth prospects of multinational corporations. The world's largest chemicals company now expects a "slight decrease" in sales and earnings this year.
The chemicals giant attributed the revised guidance to soft growth in emerging markets, particularly China, low oil prices, and a recent asset swap with Russia's OAO Gazprom. The company further reduced its forecasts for the global economy in 2015, saying it expects gross domestic product growth of 2.3%, down from 2.4%, and global chemical production to grow at 3.5%, down from an earlier estimate of 4.2%.
"We experienced a pronounced summer lull and, more importantly, no volume momentum in September," said Chief Executive Kurt Bock.