Our expectations for the global economic environment in 2017 remain unchanged:
- Growth in gross domestic product: 2.3%
- Growth in industrial production: 2.3%
- Growth in chemical production: 3.4%
- An average euro/dollar exchange rate of $1.05 per euro
- An average oil price for the year of $55 per barrel
The statements on opportunities and risks made in the BASF Report 2016 remain valid.
We confirm the sales and earnings forecast1 for the BASF Group made in the BASF Report 2016:
- Considerable (i.e., at least 6%) sales increase
- Slight (i.e., up to 10%) increase in EBIT before special items and in EBIT
- Significant premium on cost of capital with considerable decline in EBIT after cost of capital2
1 With reference to sales, “slight” represents a change of 1–5%, while “considerable” applies to changes of 6% and higher. “At prior-year level” indicates no change (+/–0%). For earnings, “slight” means a change of 1–10%, while “considerable” is used for changes of 11% and higher. “At prior-year level” indicates no change (+/–0%).
2 For an explanation of this figure, see the BASF Report 2016, Value-based management.