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The world’s largest chemical company, BASF of Germany, announced that its preliminary sales and EBIT before special items in 2023 are lower than expected and below the respective analyst consensus.
Additionally, annual EBIT and net income are considerably below the respective analyst consensus, primarily due to non-cash-effective impairments.
Expected BASF Group sales for the full year 2023 of about €68.90 billion ($74.9 billion) are below the range of €73 billion to €76 billion forecasted by BASF and below average analyst estimates of €70.58 billion. Sales in 2022 amounted to €87.33 billion.
Expected income from operations (EBIT) before special items of €3.81 billion in 2023 is below the range of €4.0 billion to €4.4 billion forecasted by BASF and below the level of average analyst estimates of €3.93 billion. EBIT before special items in 2022 amounted to €6.88 billion. The decrease compared with the prior year is due to sales-related lower margins, which could not be offset by the achieved fixed cost reduction.
The BASF Group’s expected EBIT in 2023 amounts to €2.24 billion; this is below analyst consensus of €3.69 billion and below the figure for the prior year’s €6.55 billion. This is primarily attributable to non-cash-effective impairments in the amount of €1.1 billion. It mainly relates to the Surface Technologies, Agricultural Solutions and Materials segments.
BASF Group expects net income to be €225 million in 2023, compared to a loss of €627 million in 2022. However, the analyst consensus for net income of €2.25 billion is not achieved. The prior year results included non-cash-effective impairments on Russia-related assets of Wintershall Dea in the amount of €6.5 billion.
