BASF recovers from last year's losses. The German chemical company made a profit of 225 million euros. In the same statement, BASF explained that it is launching a €1 billion cost-saving programme this year, to be extended to 2026, for the German site.
Sales, however, were lower than those posted in 2022. This year, the group posted sales of 68.902 billion euros, down 21.1% on the previous year, and below the company's expectations of between 73 and 76 billion euros. The chemical business was the one that most affected by this drop in sales: up 30.4%.
Revenues were down in all regions. In Europe, 22.9% less, in North America, 21.9% less than last year, 19.6% less in Asia Pacific, 12.4% less in South America, and 12.4% less in the Middle East and Africa.
Looking ahead to 2024, BASF anticipates slight economic growth, but warns that high energy prices continue to hold back economic development.
Martin Brudermüller, chairman of the BASF board of management, and Dirk Elvermann, the company's chief financial officer, have announced that an additional adjustment plan will be implemented for the Ludwigshafen site to achieve cost savings of 1 billion by the end of 2026. This plan will also include adjustments and cuts in the workforce and aims primarily to reduce fixed costs in order to "drive efficiency in business structures and adapt its production capacities to the needs of the market".