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The maker of products ranging from automotive paints to sunscreen ingredients now expects a core profit of €7.4billion to €7.8bn ($8.2bn to $8.7bn) this year, up from a previous forecast of €6.9bn to €7.7bn.
BASF’s earnings have been boosted after it hiked prices for some goods in March by up to 30% in response to surging costs for energy and other raw materials because of the US-Israeli war against Iran.
The company said Wednesday that its core profit in the third quarter rose 15% from the same period last year to €1.6bn.
Overall sales were up 14% over the period at €16.4bn.
“The increase was mainly driven by considerably higher prices (plus 12%) and slightly higher volumes (plus 2%),” the company said in a statement.
The results come as the European chemicals industry is under major pressure from high energy prices and increasingly intense competition from Asian rivals.
BASF is undertaking a major restructuring, cutting thousands of jobs at its historic German headquarters in Ludwigshafen, after opening a major chemical complex in China earlier this year to serve Asian markets.
The company is also exploring the multibillion-euro acquisition of its German rival Evonik, saying the combination could let it obtain feedstocks and precursor chemicals at lower cost.