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BASF confirms earnings guidance but flags risks

reuters.com · 04/29/2022 01:00
BASF confirms earnings guidance but flags risks

- German chemicals group BASF BASFY upheld its 2022 profit expectations on Friday but warned that uncertainties were exceptionally high.

BASF, which released unscheduled preliminary first-quarter earnings this month, said it was still targeting earnings before interest and tax (EBIT) adjusted for special items of between 6.6 billion and 7.2 billion euros ($7.57 billion), down from 7.8 billion euros last year.

It cautioned that its business could be hit by the fallout from Russia's attack on Ukraine and by far-reaching countermeasures in China to quell coronavirus infections but it was for now benefiting from its pricing power, leading to high margins.

"The market environment continues to be dominated by an exceptionally high level of uncertainty," said the company, which is due to hold its annual shareholder meeting on Friday.

"Risks may arise from further increases in raw materials prices and new sanctions against Russia, such as a natural gas embargo, or restricted gas supplies from Russia as a result of counter-sanctions," it added.

($1 = 0.9508 euros)

(Reporting by Ludwig Burger
Editing by Paul Carrel)

((ludwig.burger@thomsonreuters.com; +49 30 220133634;))