BASF revises 2023 earnings outlook downward amidst weak demand

BASF India has issued a profit warning because of lower demand and lower pricing. This German chemical major said that the Q2CY23 was weak for the company, which was led by lower prices, volumes, and negative currency impact.

Now, the company has adjusted its 2023 outlook. It has lowered its guidance for the calendar year 2023 because it has seen some developments which would lead to pressure on earnings. So, the company has revised the sales forecast to 73-76 billion euros versus 84-87 billion euros. Its EBIT forecast has come down as well from 4.8-5.4 billion euros to 4-4.5 billion euros.

According to the company, there are a couple of reasons for this. First, growth in global industrial production continues to slow down in the first half of 2023. It does not expect further weakening in the second half. However, it does not see any recovery. So, it could continue to remain at lower levels, and is assuming no tentative recovery because demand for consumer goods will continue to be lower and this will impact the margins as well.