In a recent announcement, BASF Group, a leading chemical company, has released their preliminary figures for the full year 2023. The results indicate that sales and earnings before interest and taxes (EBIT) before special items fell below the ranges forecasted by BASF and the average analyst consensus.

BASF Group's expected sales for the full year 2023 amounted to €68,902 million, which is below the forecasted range of €73 billion to €76 billion by the company and falls short of the average analyst estimates of €70,579 million. This represents a decline from the sales figure of €87,327 million recorded in 2022.

The expected EBIT before special items for 2023 is reported to be €3,806 million, also below the forecasted range of €4.0 billion to €4.4 billion by BASF and below the average analyst estimates of €3,934 million. In comparison, the EBIT before special items in 2022 amounted to €6,878 million. The decrease is attributed to lower margins resulting from sales-related factors and an inability to fully offset fixed cost reduction.

Breaking down the segments, the average analyst estimates for EBIT before special items were slightly exceeded by Industrial Solutions, Materials, and Agricultural Solutions in 2023. However, the Chemicals segment fell considerably short, partly due to unforeseen plant shutdowns. The Surface Technologies and Nutrition & Care segments also reported EBIT before special items slightly below the respective analyst consensus. The Other segment performed slightly weaker than expected by analysts on average.

The expected EBIT for BASF Group in 2023 is €2,240 million, considerably below the analyst consensus of €3,691 million and the figure for the previous year of €6,548 million. This decline is primarily attributed to non-cash-effective impairments totaling €1.1 billion, mainly affecting the Surface Technologies, Agricultural Solutions, and Materials segments.

Net income for BASF Group in 2023 is projected to be €225 million, indicating improvement compared to the prior-year figure of minus €627 million, which included non-cash-effective impairments on Russia-related assets. However, the net income falls short of the analyst consensus of €2,247 million.

On a positive note, cash flows from operating activities are expected to exceed the prior-year figure, reaching €8.1 billion in 2023 compared to €7,709 million in 2022. The free cash flow is anticipated to amount to €2.7 billion, down from €3,333 million in the previous year.

Despite the below-forecast sales and earnings figures, BASF Group highlights that their cash flows from operating activities have shown improvement, reflecting strong operational performance.

For more detailed analyst estimates, BASF provides an overview of the monthly compiled data on their website.

BASF Group aims to create chemistry for a sustainable future, integrating economic success with environmental protection and social responsibility. With over 111,000 employees, the company operates in various sectors and countries worldwide. Their portfolio includes six segments: Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition & Care, and Agricultural Solutions. In 2022, BASF Group generated sales of €87.3 billion. BASF shares are traded on the Frankfurt stock exchange (BAS) and as American Depositary Receipts (BASFY) in the United States.

Please note that the figures mentioned are preliminary and subject to final auditing and approval.