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BASF plans 1 bln euro cost cuts, keeps 2022 outlook

BASF plans to cut costs by roughly 1 billion euros over the next two years as the world's largest chemicals company by revenue warned of significantly higher energy and raw material costs in 2022.

Earnings before interest and tax (EBIT) before special items came in at 2.8 billion euros in the first quarter of 2022, up from 2.1 billion euros in the same period last year.

BASF said it was maintaining its outlook for the full year, with sales expected to grow by 6 to 11 percent and EBIT before special items expected to be between 7.2 billion and 8.0 billion euros.

The company also announced that Dr. Markus Kamieth would become the new Chairman of the Board of Executive Directors upon the conclusion of today's Annual Shareholders' Meeting 2022.

BASF said the plans, which are expected to lower the group's annual costs by 200 million euros by the end of 2026, will also lead to reduced production in some areas.

The company said it would provide more details on the cost-cutting plans at its Capital Markets Day on May 4.

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