BASF says basic chemicals accounted for most of the slump in Q2

German chemicals giant BASF , which surprised investors with a profit warning earlier this month, on Thursday said a slump at its basic petrochemicals businesses accounted for most of the weakness in the second quarter. "Earnings in the second quarter of 2019 were significantly negatively impacted by the lower volumes and margins in the Chemicals and Materials segments," BASF said in a statement, adding that the two divisions accounted for 83% of the overall earnings decline in the second quarter.

In a surprise announcement on July 8, BASF forecast a 30% fall in 2019 operating profit instead of a rise as previously predicted, weighing heavily on the share price. It also published preliminary group results for the second quarter at the time.