BASF’s earnings in tough market environment significantly below strong prior-year quarter

28 July 2023

In a tough market environment, BASF Group sales in the second quarter of 2023 declined by 24.7% compared with the prior-year period to €17.3bn. “We faced low demand from our key customer industries, except for automotive,” said Dr. Martin Brudermüller, Chairman of the Board of Executive Directors of BASF, when presenting the results together with Chief Financial Officer Dr. Dirk Elvermann.

BASF had already adjusted its outlook for 2023 and released preliminary figures on July 12. The decline in sales was mainly driven by lower prices, primarily in the Chemicals, Surface Technologies and Materials segments. The Agricultural Solutions segment was able to implement price increases. Lower sales volumes as a result of weaker demand weighed down the sales performance in all segments. In addition, currency effects dampened sales.

Income from operations (EBIT) before special items of €1.0bn in the second quarter of 2023 was €1.3bn below the figure of the prior-year period. Almost all segments contributed to this with significant declines in earnings, in particular the Chemicals and Materials segments. EBIT before special items of the Agricultural Solutions segment decreased slightly. Surface Technologies achieved slight earnings growth. EBIT before special items attributable to Other improved considerably. EBIT decreased by €1.4bn to €974M. This figure includes income from integral companies accounted for using the equity method amounting to €22M (prior-year period: €101M).

Income from operations before depreciation, amortisation and special items (EBITDA before special items) declined by €1.3bn to €1.9bn and EBITDA by €1.5bn to €1.9bn in the second quarter of 2023. Net income amounted to €499M, compared with €2.1bn in the prior-year quarter.

< Previous article

ASK Chemicals Korea is awarded with National Industry Award for Exceptional Safety Management and Commitment to ESG Principles

Next article >

Fast-curing SMD adhesive for precise dispensing