Our expectations for the global economic environment in 2018 remain unchanged:

  • Growth in gross domestic product: 3.0%
  • Growth in industrial production: 3.2%
  • Growth in chemical production: 3.4%
  • Average euro/dollar exchange rate of $1.20 per euro
  • Average Brent blend oil price for the year of $65 per barrel

Overall, the statements on opportunities and risks made in the BASF Report 2017 continue to apply.

We are confirming the sales and earnings forecast1 for the BASF Group made in the BASF Report 2017:

  • Slight sales growth
  • Slight increase in EBIT before special items
  • Slight decline in EBIT
  • Significant premium on cost of capital with considerable decline in EBIT after cost of capital2

1 For 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 indicator, see the BASF Report 2017, EBIT after cost of capital.