BASF's sales in the third quarter increased by 12% year-on-year to 21.9 billion euros

On October 26, BASF Group's quarterly report showed that the sales volume in the third quarter of 2022 was 21.9 billion euros, up 12% year on year. BASF said that this growth was mainly due to the substantial price increase in almost all business areas. The positive monetary factors had a positive impact on all business areas. The business portfolio also effectively promoted the growth of sales. However, except for the agricultural solutions business, sales in all other business areas declined, greatly curbing sales growth.

BASF's earnings before interest and tax excluding special items in the third quarter of 2022 were 1.3 billion euros, a decrease of 517 million euros compared with the third quarter of 2021. Compared with the strong performance of the same period last year, the revenue of its chemicals and materials business decreased significantly.

BASF's earnings before interest, tax, depreciation and amortization excluding special items in the third quarter were 2.3 billion euros, a decrease of 446 million euros compared with the third quarter of 2021. Earnings before interest, tax, depreciation and amortization were 2.3 billion euros, down 474 million euros year on year.

On October 12, 2022, BASF announced a cost saving plan. The plan will implement a number of cost reduction measures before the end of 2024. After the completion of the overall plan, it is expected to save 500 million euros annually.

Bo Mule, Chairman of the Executive Board of BASF Europe, believes that the plan is a response to the deteriorating revenue progress and challenging regulatory framework conditions in Europe and Germany. He said: "First, the European chemical industry market has experienced weak growth in the past decade. Second, the sharp rise in the prices of natural gas and electricity this year has put pressure on the value chain of the chemical industry."

In the first nine months of 2022, the natural gas cost of BASF's European production base increased by 2.2 billion euros compared with the same period in 2021. "Not only that, but the uncertainty brought about by a large number of regulations and policies planned by the European Union is also increasing the burden on the chemical industry." Bo mule added.

Bo Mule said that these challenging regulatory framework conditions in Europe are endangering the international competitiveness of local manufacturers and forcing BASF to permanently adjust its cost structure as soon as possible. The resulting cost saving plan aims to protect the medium - and long-term competitiveness in Germany and Europe.

Although the economy has declined significantly since the third quarter of 2022, BASF Group still maintains its previous forecast for 2022 in the first half of the year's performance report: expected sales of 86 billion to 89 billion euros, and expected earnings before interest and tax excluding special items of 6.8 billion to 7.2 billion euros.