German chemicals giant BASF lifted its 2026 profit outlook for the second time this year on Wednesday as it hiked prices to clients following the outbreak of the Iran war.
The maker of products ranging from automotive paints to sunscreen ingredients now expects a core profit of 7.4 billion to 7.8 billion euros ($8.2 to $8.7 billion) this year, up from a previous forecast of 6.9 billion to 7.7 billion euros.
BASF's earnings have been boosted after it hiked prices for some goods in March by up to 30% in response to surging costs for energy and other raw materials because of the U.S.-Israeli war against Iran.
The company said Wednesday that its core profit in the third quarter rose 15% from the period last year to 1.6 billion euros.
Overall sales were up 14% over the period at 16.4 billion euros.
"The increase was mainly driven by considerably higher prices (plus 12%) and slightly higher volumes (plus 2%)," the company said in a statement.
The results come as the European chemicals industry is under major pressure from high energy prices and increasingly intense competition from Asian rivals.
BASF is undertaking a major restructuring, cutting thousands of jobs at its historic German headquarters in Ludwigshafen after opening earlier this year a major chemical complex in China to serve Asian markets.
The company is also exploring the multibillion-euro acquisition of its German rival Evonik, saying the combination could let it obtain feedstocks and precursor chemicals at lower cost.
"This is a serious attempt," chief executive Markus Kamieth told a press conference about the proposed merger.
"We're committed; this is certainly not something that is going to drag on for years," he said.
