By David Sachs

BASF said Wednesday that it has downgraded its 2023 outlook after preliminary second-quarter earnings plummeted and revenues fell significantly due to lower prices and sales volumes.

The German chemical giant said second-quarter earnings before interest and taxes was 1.01 billion euros ($1.11 billion) before special items, a 57% drop from last year's second quarter. Sales fell to EUR17.3 billion, down 25% from a year ago.

"This was mainly driven by considerably lower prices and volumes; negative currency effects also contributed to the sales decline," BASF said.

BASF's EBIT finished the quarter at EUR974 million compared with EUR2.35 billion a year ago. Net income reached EUR499 million, down from EUR2.09 billion a year ago.

The company lowered its 2023 sales guidance to between EUR73 billion and EUR76 billion from EUR84 billion to EUR87 billion. EBIT before special items is now expected to finish the year between EUR4.4 billion and EUR 4.8 billion, down from the original target range of EUR4.8 billion to EUR5.4 billion.

Write to David Sachs at david.sachs@wsj.com

(END) Dow Jones Newswires

July 12, 2023 12:42 ET (16:42 GMT)

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