By Pierre Bertrand

 

BASF swung to a third-quarter net loss after sales were hampered by lower prices and volumes.

The German chemical company said Tuesday that it posted a 249 million euro net loss ($264.4 million) compared with EUR909 million in profit in the prior year, on revenue that fell 28% to EUR15.73 billion.

The company's earnings before interest and taxes before special items fell 57% to EUR575 million.

BASF said its earnings decline reflected the overall negative earnings of Wintershall Dea, which reported a EUR535 million net loss for the third quarter.

The DAX-listed company said it expects to achieve more than EUR600 million in non-production cost savings by the end of next year, rising to more than EUR700 million by the end of 2026.

The global chemical industry is expected to stabilize in the fourth quarter, the company said. But it warned that the macroeconomic outlook remains uncertain "in the current interest-rate policy environment and in view of increasing geopolitical risks. Rising raw-materials prices in particular could weigh on demand and margins."

BASF backed its 2023 guidance.

 

Write to Pierre Bertrand at pierre.bertrand@wsj.com

 

(END) Dow Jones Newswires

October 31, 2023 02:22 ET (06:22 GMT)

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