BFFAF - BASF guides for lower profit sales in 2022 as economy slows

BASF (OTCQX:BASFY) falls more than 3% in Europe after reporting a drop in Q4 profit, hurt by €800M in additional costs due to rising natural gas prices in Europe, and expecting results to decline in 2022 in a slowing economy. The company Q4 net profit fell to €898M (~$1B) from €1.06B in the year-ago quarter and below €969M analyst consensus estimate, while sales jumped 24% Y/Y to €19.78B, beating expectations of €18.44B, after it raised prices by 25% and volumes by 11% in an effort to fight rising inflationary pressures. Q4 volumes increased across all divisions except in the materials segment, while EBIT rose 4.5% to €2.18B; free cash flow improved 84% to €1.8B. "We will implement further substantial price increases in the coming months to pass on the significantly higher costs and improve our margins in the downstream businesses," CEO Martin Brudermueller said, adding that "established pricing procedures in these

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BASF guides for lower profit, sales in 2022 as economy slows