BASF: Losses in Q3 2023 and forecast downwards
Like many other companies in the chemical industry, BASF is lowering its forecast for the year as a whole even further.
This is due to a "lack of stabilization in chemical production", lower sales volumes and falling prices, said Dr. Martin Brudermüller, Chairman of the Board of Executive Directors of BASF, at the presentation of the business figures for the third quarter of 2023. BASF reports losses of €6.2 million for the third quarter compared to the previous year, with sales of €15.7 billion. Earnings before interest and taxes (EBIT) and special items fell by 57.3 percent to 575 million euros. According to Brudermüller, significantly lower prices, particularly in the Materials, Chemicals and Surface Technologies segments, were the main reason for the decline. According to the figures, the Materials division did not decline as much as the other two divisions in the third quarter. Although Brudermüller hopes that global chemical production will stabilize in the fourth quarter, when presenting the figures he also referred to the current global political tensions, which could lead to a renewed rise in raw material prices. According to Brudermüller, the Group's targets for 2023 as a whole are now around 73 billion euros for sales and around 4 billion euros for operating profit (EBIT). BASF wants to continue to work consistently on its cost structures in order to improve its own competitiveness, especially in Europe. At the end of February 2023, the company had already announced a cost-cutting program with a focus on Europe and the adjustment of Verbund structures in Ludwigshafen. The cost-cutting measures are expected to generate around 600 million euros by the end of 2024 and increase to 700 million euros in 2026. Together with measures in other regions, CFO Dr. Dirk Elvermann aims to save EUR 1.1 billion annually from 2026 onwards compared to the current level.
- PM BASF (Oct. 31, 2023)
- Photo: © BASF