Citing a sharp deterioration in macroeconomic indicators, along with geopolitical tensions, BASF has revised downward its outlook for business in 2015.

In a conference call with journalists, CEO Kurt Bock said management's forecast EBITDA of €14 billion for next year is now out of reach. Instead, it is likely to be in line with market expectations of €10-12 billion. The group's forecast sales target of €80 billion is also unlikely to be achieved.

For 2014, Bock said BASF still expects a "slight" increase in EBIT before special items, even if no improvement in the overall economic picture is to be expected in the fourth quarter.

In the third-quarter of this year, EBIT rose by just under 9% to €1.8 billion, with EBITDA increasing by 1.2% to €2.52 billion. This was despite an earnings setback in the Agricultural Solutions segment. Sales revenue increased by just over 3% to €18.3 billion.

Group sales in Q4 are projected to decline minimally, reflecting the scheduled divestment of the gas trading and storage business before the end of this year, along with negative currency effects.

As major factors contributing to the less positive outlook, Bock said crucial European economies are showing "significant" signs of weakness. A particular harbinger of worse times to come, he said, is that in Germany - the region's largest economy and BASF's home market - the business climate index sank in October for the fifth month in succession.

Spotlighting other geographical pressure zones, the BASF chief noted that in South America, Brazil - the region's largest economy - is now in recession, growth in China has weakened further and Japan's recovery from recession has been moderate. By contrast, the US chemicals economy especially was buoyed by access to cheap shale gas-derived feedstock.

As it battens down the hatches to weather the economic storms ahead, Bock said BASF is operating cautiously. Caps are being placed on hiring new personnel, while moderate staff reductions can be expected as manufacturing facilities are shut down or sold.

All in all, the CEO said, BASF's long-term strategy remains on track. The group has increased spending in "selected growth markets" and continues to intensify its R&D efforts.

Optimization of the portfolio continues, with Bock pointing to more than 20 businesses divested since 2011. The divestments have been balanced with smaller acquisitions, many of them technology-driven, he said.

The operational excellence program STEP is ahead of schedule. By the end of 2015, BASF aims to achieve improvements totaling €1.3 billion, some €300 million more than initially planned.