BASF Raises 2022 Sales, EBIT Outlook -- Update
27 July 2022 - 06:08PM
Dow Jones News
By Giulia Petroni and Cristina Roca
BASF SE on Wednesday raised its full-year sales and earnings
guidance based on a positive performance in the first half and
assuming there are no new lockdowns in China or gas production
shutdowns in Europe.
The German chemicals company said it now expects sales to grow
to between 86 billion and 89 billion euros ($87.4 billion-$90.5
billion), compared with previous expectations of EUR74 billion and
EUR77 billion.
Earnings before interest and taxes before special items are seen
at between EUR6.8 billion and EUR7.2 billion, from EUR6.6 billion
and EUR7.2 billion previously.
The company said it will weigh strategic options for its food
and health performance ingredients business, part of its nutrition
and health division. "The business has limited portfolio synergies
and integration into the BASF Verbund," Chief Financial Officer
Hans-Ulrich Engel said during an earnings presentation. BASF
Verbund plants combine different functions in one site.
BASF confirmed preliminary second-quarter figures, including an
increase in net profit and sales. It said Wednesday that the good
momentum it experienced during the quarter continued in July.
However, it warned that the war in Ukraine and its impact on
energy and raw-material prices may lead to additional headwinds,
while further risks could arise from Covid-19-related
restrictions.
"For the second half of the year, BASF anticipates a gradual
cooling of economic development globally, but much more pronounced
in Europe," the group said.
BASF said it is responding to the economic slowdown with
cost-reduction measures.
Write to Giulia Petroni at giulia.petroni@wsj.com and Cristina
Roca at cristina.roca@wsj.com
(END) Dow Jones Newswires
July 27, 2022 03:53 ET (07:53 GMT)
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