German chemicals giant BASF has today posted a 45% drop in 2023 earnings, worse than both the market view and its own projections, adding to the challenges to be faced by its CEO-designate.
Operating income before special items fell to €3.81 billion, below the €4 billion at the bottom end of BASF's target range, as lower sales and prices overshadowed its cost-cutting efforts.
Net income was €225m on sales of €68.9 billion, both missing analyst expectations, BASF said in a statement citing preliminary figures.
Net profit was hit by €1.1 billion in impairments in its Surface Technologies, Agricultural Solutions and Materials segments.
BASF last month announced an organisational overhaul to tackle falling earnings and sluggish economic growth in its European home markets, and shortly after appointed company veteran Markus Kamieth to become CEO later this year.
The company is scheduled to report detailed earnings on February 23.
