BASF Group, in its financial report for the third quarter of 2023, announced a significant decline in sales, amounting to €15.7 billion. This represents a decrease of €6.2 billion compared to the same period in the previous year. The decline was primarily attributed to considerably lower prices, particularly in the Materials, Chemicals, and Surface Technologies segments.
Breaking down the specific divisions, the Chemicals division achieved sales of €2,430 million, reflecting a sharp decline of 35.9%. The Surface Technologies division reported sales of €3,887 million, down by 27.1%. The Nutrition & Care division recorded sales of €1,688 million, indicating a decrease of 20.5%.
Geographically, BASF’s business in Europe reached €5.941 billion, marking a decline of 32.2%. Sales in North America amounted to €3.939 million, down 32.6%. In the Asia Pacific region, sales reached €4.25 billion, representing a decrease of 21.4%. Within Asia Pacific, Greater China’s sales amounted to €2.415 billion, down 19.1%.
In response to the challenging macroeconomic conditions, BASF announced its plan to reduce capital expenditures (capex) by €4 billion ($4.25 billion) for the five-year period until 2027. This means that the company intends to spend €24.8 billion from 2023 to 2027, compared to the previous plan of €28.8 billion.
CEO Martin Brudermueller emphasized that while overall investments for BASF Group are being reduced, the company remains committed to its growth projects and transformation towards climate neutrality. He clarified that the reduction in capex is not simply a postponement of investments but involves a decrease in the number of projects. BASF will implement alternative measures that require lower capital expenditure.
Brudermueller also mentioned that BASF has already reduced its spending by €1 billion to €5.3 billion in the current year. These measures aim to navigate the challenging economic environment while maintaining the company’s long-term goals and commitment to sustainability.