Chemical giant BASF says ‘indirect effects’ of tariffs are squeezing demand and profits

Germany’s BASF, one of the largest chemical producers, said “indirect effects” of U.S. tariffs on imports has had an impact on demand and profit margins.

“The volatility of the tariff announcements and the unpredictability of other decisions by the United States government as well as possible countermeasures by trading partners are causing a high level of uncertainty,” the company said in a statement on its second-quarter results.

BASF added that “there are indirect effects, particularly associated with demand for our products and their prices. This is mainly due to intensified competitive pressure and rising inflation. It is still not possible to fully assess the resulting effects.”

The chemicals giant’s second-quarter sales amounted to 15.8 billion euros ($18.2 billion), a decline of 2% from the same period last year.

The company also reported a 9.4% decline year-on-year in adjusted profit to 1.8 billion euros for the second quarter.

— Ganesh Rao

L’Oreal missed second-quarter sales forecasts, posting a 2.4% increase, as growth in Europe slowed more than expected. 

The cosmetics group saw a small rebound in the U.S. and China, which helped to offset weakness in other regions.

However, the company said it will push for exemptions from U.S. tariffs, warning the EU-U.S. trade deal would be costly, according to Reuters.

— Domi Suskova

Siemens Healthineers has topped revenue forecasts for the third quarter, posting 7.6% growth to 5.7 billion euros ($6.6 billion) year on year.

The German medical technology group raised the midpoints of its outlook, even as CEO Bernd Montag warned that geopolitical volatility remains high.

— Michael Considine

Santander posted a record net profit in the second quarter, coming in at 3.4 billion euros ($3.9 billion) and topping expectations. The Spanish lender also unveiled a 1.7 billion euro share buyback program as it reiterated its full year outlook.

— Michael Considine

Good morning from London.

There’s just under an hour and a half to go until stocks begin trading, with the futures tied to the Stoxx Europe 600 index pointing to a gain of 0.2% when stock markets open.

Regionally, the U.K.’s FTSE 100 and Germany’s DAX are expected to rise 0.2% as well. Meanwhile, France CAC 40 index is set to be nearly flat, according to FactSet data.

European companies including Santander, BASF, UBS, HSBC, Siemens Healthineers, Mercedes-Benz, L’Oreal and Kering have reported earnings.

— Ganesh Rao