Net profit reached €1.3 billion (US$1.4 billion) for the year, boosted by a better performance at firms in which BASF has part ownership as well as asset sales.

But the result was below analyst estimates compiled by BASF, who foresaw profits of €1.7 billion.

The group’s operating profit (Ebitda before special items), a closely watched measure of underlying performance, came in at €7.9 billion for the year, broadly in line with expectations.

Sales were down to €65.3 billion from €68.9 billion – even as sales volumes rose – with BASF blaming the fall on “competition-driven price decreases”, underscoring the fierce competition the German group faces.

The firm also flagged “weak momentum in the automotive industry”, where European carmakers have been losing market share to Chinese producers, as a factor in its stuttering sales.

For 2025, BASF said it expected operating profit to rise above €8 billion, though it said “increasing geopolitical uncertainty and a further escalation of trade conflicts” could make business tricky.

US President Donald Trump has repeatedly threatened to impose tariffs on trading partners, which could weigh on industrial activity, and has already imposed duties on iron, aluminium and all imports from China.

BASF shares opened down 2.3% on the Frankfurt Stock Exchange.