BASF Warns Profit Could Fall 30% on U.S.-China Trade War

BASF, the world's largest chemical company, issued a profit warning, expecting earnings to fall by up to 30% compared to last year, with sales also likely to decline. This significant downgrade from previous expectations has raised concerns about the global economy, as BASF is seen as an economic bellwether. The company faces challenges in the automotive sector and industrial production, along with issues in the US market due to heavy rainfall affecting agriculture. These factors have led to a 5% drop in BASF's shares, impacting other chemical makers and raising questions about the future of large companies exposed to global trade.

What was the main concern of analysts regarding BASF in the second quarter?

• Expansion into new markets

• Acquisition of a competitor

• Warning on profits

• Increase in production costs

What sector's difficulties have significantly impacted BASF's sales?

• Technology

• Healthcare

• Automotive

• Retail

How has the weather in the United States affected BASF?

• Delayed growing season impacting crop chemicals

• Improved industrial production

• Increased demand for chemicals

• Boosted sales in the automotive sector

What was the immediate market reaction to BASF's announcement?

• Shares decreased by 5%

• Shares remained stable

• Shares increased by 10%

• Shares increased by 5%

What broader question does BASF's performance raise about the corporate sector?

• Should companies focus on local markets?

• Is BASF a sign of worse to come?

• Is there a shift towards renewable energy?

• Is there a need for more innovation?