By BASF, the German chemical giant, announced on Wednesday that it has revised its 2023 outlook following a significant decline in second-quarter earnings and revenues. The company attributes the decrease to lower prices and sales volumes.
In the second quarter, BASF’s earnings before interest and taxes (EBIT) reached €1.01 billion ($1.11 billion) before special items, representing a staggering 57% drop compared to the same period last year. Sales also experienced a substantial decline, falling 25% to €17.3 billion.
BASF stated, “This decline was primarily driven by significantly lower prices and volumes, with negative currency effects also influencing the decline in sales.”
In terms of specific figures, BASF’s EBIT for the quarter concluded at €974 million, down from €2.35 billion during the same period in 2019. Net income decreased to €499 million from €2.09 billion.
Following these disappointing results, BASF has adjusted its 2023 sales guidance from a range of €84 billion to €87 billion to between €73 billion and €76 billion. Moreover, EBIT before special items is now expected to fall within the range of €4.4 billion to €4.8 billion for this year, compared to the original target range of €4.8 billion to €5.4 billion.
It remains to be seen how BASF will navigate the challenging market conditions that led to this downgrade.
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