BASF: forecast maintained despite economic conditions

(CercleFinance.com) - On Wednesday BASF maintained its earnings forecasts for 2022, despite the "significant" weakening of the economic situation that it has seen in recent weeks.


The German chemical company still expects EBIT, adjusted for exceptional items, of between 6.8 and 7.2 billion euros this year.

It also still expects annual revenues of between 86 and 89 billion euros.

The group reported Q3 adjusted EBIT of 1.3 billion euros, below the 1.8 billion euros posted a year ago, although in line with the consensus.

Meanwhile, sales increased 12% to 21.9 billion euros, helped by price increases it made.

Faced with continuing high raw material prices and energy prices, BASF confirmed the launch of a cost-cutting program, targeting 500 million euros in annual savings.

Following these announcements, the share gained 0.9% on Wednesday in early trading on the Frankfurt stock exchange, posting one of the strongest increases in the weak DAX index (-0.2%) and the Euro STOXX 50 index (-0.3%).


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