BASF, the world's largest chemical company, has revised its forecast for the current year despite relatively stable quarterly results. The company now expects its adjusted EBITDA to reach the lower end of the previously projected range of 8.0 to 8.6 billion euros for 2024. In the third quarter, sales remained steady at 15.7 billion euros, while adjusted operating profit increased by 5% to 1.6 billion euros. BASF recorded a net profit of 287 million euros, marking a significant improvement from the previous year's loss. However, the stock experienced a slight decline in response to this news.
Comprehensive Restructuring Planned
To address challenges posed by high energy costs and weak economic development, BASF is planning an extensive restructuring. The company aims to focus on its core business, which will include basic chemicals, plastics, additives, and products for food, pharmaceutical, and cosmetic companies. The Ludwigshafen headquarters may face further cuts, including potential plant closures. Additionally, BASF plans to divest certain business units and list its agricultural division on the stock exchange. Ongoing cost-saving programs are expected to yield annual savings of 2.1 billion euros by the end of 2026.
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