Dow Jones Newswires: BASF backs 2022 view as it moves ahead with cost savings plan

by | Oct 26, 2022 | Stock Market

By Pierre Bertrand BASF SE said Wednesday that it is sticking to its 2022 outlook as it moves ahead with a cost-saving plan to counteract significantly weaker earnings in Germany and the rest of Europe. The German chemical company continues to expect full-year sales of between 86 billion euros and 89 billion euros ($85.72 billion-$88.71 billion), and earnings before interest and taxes before special items between EUR6.8 billion and EUR7.2 billion.

BASF said earlier this month it was launching a cost-savings program to be implemented through the end of 2024 that, when completed, would result in annual savings of EUR500 million. The program will focus particularly on its Ludwigshafen site, where more than half of the cost reductions will be made. Net income for the third quarter was EUR909 million, compared with EUR1.25 billion for prior-year period, on revenue that increased by 12% to EUR21.95 billion, BASF said, confirming preliminary results released on Oct. 12. As previously reported, third-quarter earnings were hit by a EUR740 million impairment related to the partial writedown on its stake in Nord Stream 1 gas pipeline operator, Wintershall Dea. Write to Pierre Bertrand at pierre.bertrand@wsj.com

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