BASF is defying rising energy and raw materials prices and raising its targets after an unexpectedly good first half. For 2022, BASF now expects sales of 86 to 89 billion euros and operating results (EBIT) before special items of 6.8 to 7.2 billion euros, the German chemical company announced.
Previously, sales were between 74 and 77 euros (previous year: 78.6 billion) and adjusted profits between 6.6 and 7.2 (7.8) billion euros were expected. “Despite the continued rise in raw material and energy prices, we once again delivered a solid result in the second quarter,” said CEO Martin Brudermüller.
BASF already published preliminary quarterly numbers in mid-July, which were better than analysts had expected. Even according to the final figures, adjusted operating profit (EBIT) of €2.34 billion was roughly at the same level as the previous year’s quarter of €2.36 billion. The group was able to significantly increase profits, mainly in the agricultural business, but also in nutrition and care, while things went downhill in the business with basic chemicals, for example. BASF was able to mitigate the significant increase in energy and raw materials costs with higher sales prices.
For the second half of the year, the group assumes a gradual slowdown in global economic development, although this will be more pronounced in Europe.