BASF SE has improved its profit estimates for 2010 after seeing higher sales in the third-quarter that also resulted in greater profits.
The German company is the largest chemical manufacturer in the world and has a business footprint in dozens of countries. The company said in a statement that it sees a “good business development” in the fourth quarter, with expectations that its full-year earnings before interest, tax and special items will surge upwards of 8 billion euros, or $11 billion.
Ludwigshafen, Germany-based BASF is expecting revenues to reach at least 63 billion euros, or $87.2 billion, in 2010. The company has seen greater profits as prices have surged in recent months and there is a recovering demand for basic petrochemicals and plastics. BASF has recently spent up to 30 billion euros, or $41.5 billion, on acquisitions that have enabled it in diversifying its product range and gaining a foothold in better-performing Asian markets.
The company earned 2.2 billion euros before interest or tax, or approximately $3 billion, in the third quarter, showing a boost of 77 percent.
The company saw its shares rising 0.8 percent to trade at 51.03 euros, or $70.73, as of 9:37 a.m. in Frankfurt, while the benchmark DAX index dropped 0.2 percent.
BASF has expanded significantly into the Chinese market with the construction of a water-treatment and paper- chemicals plant at its Nanjing site, which is set to become operational in 2012. It is also building a $1.4 billion joint venture plant with China Petroleum & Chemical Corp., known as Sinopec.
