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Investing.com -- BASF (ETR:BASFN) maintained its full-year guidance despite ongoing concerns around global trade tensions, saying it remains difficult to gauge the broader impact of tariffs at this stage.
The German chemicals group flagged “a high level of uncertainty” linked to recent tariff announcements and the unpredictability of future U.S. actions, as well as possible countermeasures from other countries. Still, BASF said it sees only limited direct exposure, thanks to its local production footprint.
“This high proportion of local production is the reason why the direct impact of tariffs on BASF is likely to be limited,” said BASF CFO Dirk Elvermann. In 2024, more than 80% of the company’s U.S. revenue came from goods produced within the country.
Elvermann added that while the company is shielded from direct tariff costs, indirect consequences, such as shifts in customer behavior, are “currently difficult to estimate.”
BASF reported a 3.2% drop in adjusted EBITDA to €2.625 billion for the first quarter, surpassing analyst forecasts of €2.48 billion, based on company-compiled estimates. Surface Technologies was the only division to post earnings growth during the period.
Group sales slipped to €17.40 billion from €17.55 billion a year earlier, missing expectations of €17.60 billion. Weaker demand in its Agricultural Solutions, Chemicals, and Nutrition and Care businesses, along with pricing pressure across most divisions, outweighed gains from foreign exchange movements.
Revenue grew in Europe and Asia Pacific but fell across South America, Africa, the Middle East, and North America.
Net income plunged 41% to €808 million, impacted by a €300 million charge related to BASF’s exit from the Nordlicht offshore wind project in the North Sea.
Looking ahead, the company continues to target full-year EBITDA before special items in the range of €8.0 billion to €8.4 billion, up from €7.86 billion in 2024. It also expects free cash flow between €0.4 billion and €0.8 billion, compared with €748 million last year.
Jefferies analysts said they expect "a muted share price response" to the report.