By BASF, the German chemicals giant, reported that its sales and earnings for 2023 fell short of both the company’s guidance and consensus expectations. The decrease was primarily due to write-downs and sales of lower-margin products.
Preliminary Figures
According to preliminary figures, BASF expects to incur a hit of €1.1 billion ($1.20 billion), mainly related to noncash write-downs in its surface technologies, agricultural, and materials segments.
Sales for the year totaled €68.90 billion, a decrease from €87.33 billion in 2022. This fell below the company’s guidance range of €73 billion to €76 billion, as well as analysts’ forecast of €70.58 billion.
Earnings Decline
BASF reported that earnings before interest and taxes before special items dropped to €3.81 billion from €6.88 billion. This was below the company’s estimated range of €4.0 billion to €4.4 billion and analysts’ consensus estimate of €3.93 billion.
On a positive note, BASF reversed its net loss from the previous year, reporting a net profit of €225 million, compared to a loss of €627 million in 2022. However, this still fell short of analysts’ expectations of €2.25 billion.
Full Report Coming Soon
BASF is set to publish its full report for 2023 on February 23.
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