BASF was only able to partially pass on the increased energy and raw material costs to customers through higher sales prices.
(Photo: AP)
Frankfurt Rising energy and raw material costs are putting increasing pressure on BASF. According to preliminary figures, adjusted operating profit (EBIT) fell by almost 28 percent to 1.348 billion euros in the third quarter, as the chemical company announced on Wednesday.
With that, BASF performed slightly better than expected by analysts, who had expected an average decline to 1.313 billion. After the announcement became known, the share price initially rose by more than one percent.
The Ludwigshafen-based company explained that BASF was only able to partially pass on the increased costs to customers via higher sales prices. Sales rose by twelve percent to 21.946 billion euros, with tailwind also coming from the strong dollar. BASF confirmed its forecast for this year and announced an annual cost reduction program of 500 million euros.
More: Recession could slow down the chemical industry’s green transition
Top jobs of the day
Find the best jobs now and
be notified by email.