BASF's sales in the third quarter of €21.9 billion, up 12 percent year-on-year

According to the quarterly report released by BASF Group on October 26, sales in the third quarter of 2022 were €21.
9 billion, up 12%
year-on-year.
BASF said that this increase was mainly due to significantly higher prices in almost all business areas, positive currency factors had a positive impact on all business areas, and the business portfolio effectively drove sales growth
.
However, volume declines in all but the Agricultural Solutions segment significantly curbed sales growth
.

BASF's EBIT before special items amounted to €1.
3 billion in the third quarter of 2022, down €517 million
compared to Q3 2021.
Compared to the strong performance in the same period last year, earnings in its Chemicals & Materials segment declined
significantly.

BASF's EBITDA before special items amounted to €2.
3 billion in the third quarter, a decrease of €446 million
compared to Q3 2021.
EBITDA amounted to €2.
3 billion, down €474 million
.

On October 12, 2022, BASF announced a cost-saving program
.
The plan will implement several cost-reduction measures by the end of 2024 and is expected to save €500 million
per year when the overall plan is completed.

Brudermüller, Chairman of the Board of Executive Directors of BASF SE, sees the initiative as a response to
deteriorating earnings progress and challenging regulatory framework conditions in Europe and Germany.
"First, the European chemical market has seen weak growth over the past decade
," he said.
Second, the sharp rise in natural gas and electricity prices this year has put pressure on
the chemical industry value chain.
”

In the first nine months of 2022, natural gas costs at BASF's European sites increased by an additional €2.
2 billion
compared to the same period in 2021.
"Not only that, but the uncertainty caused by the large number of regulations and policies planned by the EU is also adding to the burden
on the chemical industry.
" Brudermüller adds
.

Brudermüller said that these challenging regulatory framework conditions in Europe are jeopardizing the international competitiveness of local manufacturers and forcing BASF to permanently adjust our cost structure
as soon as possible.
The resulting cost-saving program aims to protect our competitiveness
in Germany and Europe in the medium and long term.

Despite the significant economic decline since the third quarter of 2022, the BASF Group maintained its forecast for 2022 in its first half report: sales of €86 billion ~ €89 billion and EBIT before special items of EUR 6.
8 billion ~ EUR 7.
2 billion
.