BASF ( OTCQX:BASFY ) trades more than 2% lower in Europe Tuesday after saying costs at its European cites must be brought down "permanently" because of sluggish growth, high energy costs and over-regulation.
"These challenging framework conditions in Europe endanger the international competitiveness of European producers and force us to adapt our cost structures as quickly as possible and also permanently," CEO Martin Brudermueller said.
BASF ( OTCQX:BASFY ) said natural gas costs at its European sites in the first nine months of 2022 were ~€2.2B ($2.19B) higher than in the year-earlier period.
Nevertheless, BASF ( OTCQX:BASFY ) continues to expect full-year sales of €86B-€89B and EBIT of €6.8B-€7.2B, and confirmed Q3 net income of €909M , compared with €1.25B in the prior-year period, on 12% higher revenue to €21.95B.
Two weeks ago, BASF ( OTCQX:BASFY ) unveiled a plan to cut annual costs by €500M up to 2024 .
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BASF seeks 'permanently' lower costs in Europe as energy costs surge