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BASF cuts 2015 targets on a weak China and Brazil

BASF's products include car coatings, foam chemicals, catalytic converters and mining chemicals
BASF's products include car coatings, foam chemicals, catalytic converters and mining chemicals

BASF, the world's largest chemicals firm by sales, today lowered its full-year earnings guidance on weak sales in China, Brazil and other emerging markets.

BASF, whose products include car coatings, foam chemicals, catalytic converters and mining chemicals, said it now expected a slight decrease in sales and adjusted earnings before interest and taxes. 

It had previously forecast flat operating profit and slightly rising sales. 

"We experienced a pronounced summer lull and no volume momentum in September. Major markets like Brazil are in a recession or face lower growth rates, such as China," the company's chief executive Kurt Bock said. 

The group's adjusted EBIT in the quarter to September slipped 10% to €1.6 billion, below the average estimate of €1.63 billion in a Reuters poll. 

Profits were hurt by lower volumes in the pigments business, weak demand for oilfield chemicals and tough competition in vitamins, among other factors. 

BASF's crop protection unit took a worse-than-expected hit from a weak Brazil business after the country's currency, the real, hit an all-time low in September.