Industry Informationposition:home > News Center > Industry Information
On October 31st, BASF released a quarterly report showing sales of €15.7 billion (approximately 121.4 billion yuan) in the third quarter of 2023, a decrease of €6.2 billion (approximately 48 billion yuan) from the same period last year.
The main reason for the decrease in sales is the significant decline in prices, which is concentrated in the materials, chemicals, and surface treatment technology business areas. In addition, a significant decline in sales across all business areas has lowered sales performance. But, the price increase in the agricultural solutions business sector has driven sales. BASF Group Executive Board Chairman Martin Brudermuller said, "Except for the automotive industry, sales to all other industries are significantly lower than the same period last year."
Due to a significant decline in EBIT excluding special projects in the chemicals, nutrition and care, industrial solutions, and materials businesses, BASF's EBIT excluding special projects in the third quarter was €575 million, a decrease of €772 million compared to the same period last year.
In addition to the decrease in EBIT excluding special projects, the overall loss caused by Wintershall Dea due to special projects also led to a decrease in net income for BASF. The net income for the third quarter was negative €249 million, compared to €909 million in the same period last year.
In order to improve the cost structure and enhance competitiveness, especially in Europe. At the end of February 2023, BASF announced a cost reduction plan with a focus on Europe and made structural adjustments to the Ludwigshafen integrated base. BASF currently expects to reduce total costs by approximately €1.1 billion per year by the end of 2026.
BASF stated that in the current environment of interest rate policy and increasing geopolitical risks, the macroeconomic outlook remains highly uncertain. Especially the rise in raw material prices may drag down demands and profit margins. It is expected that global chemical industry production will further stabilize in the fourth quarter of 2023.
BASF Group maintains its full year forecast for 2023: sales are expected to be between 73 billion and 76 billion euros, and EBIT excluding special projects is expected to be between 4 billion and 4.4 billion euros. However, Martin Brudermuller stated that if chemical production can not remian stabilized still, there is a risk of further production decline and price drops exceeding expectations.