FRANKFURT, Oct 27 (Reuters) - Germany's BASF
increased its 2021 earnings guidance on Wednesday for the third
time as its large industrial customers readily accepted
marked-up prices for basic chemicals amid a raft of global
The world's largest chemicals maker by sales said in a
statement it now expected 2021 earnings before interest and tax
(EBIT), adjusted for special items, to come in at between 7.5
billion and 8 billion euros ($8.7-$9.3 billion), compared to a
previous forecast for 7.0 billion to 7.5 billion euros.
Adjusted operating earnings in the third-quarter, when a
summer lull normally dampens demand in the sector, jumped to
1.87 billion euros, up from 581 million euros in the
pandemic-stricken year-earlier period and beating the 1.8
billion expected on average by analysts.
A 42% surge in group revenues to 19.7 billion euros was
fuelled by price increases of 36% on average.
The upswing came even as a shortage of microchips in the car
sector and power cuts in China were a drag on demand.
"Growth momentum slowed compared with the previous quarter
due to supply bottlenecks in many value chains of the
manufacturing sector," the company said.
While benefiting BASF's basic chemicals units, the global
material scarcities and higher procurement costs proved a burden
on BASF businesses that make more sophisticated products such as
farming pesticides, coatings and nutritional supplements, where
margins and earnings slipped.
(Reporting by Ludwig Burger
Editing by Riham Alkousaa and Emma Thomasson)