By Michael Susin
BASF said profits for 2024 are expected to miss market consensus due to non-cash-effective impairments and restructuring costs.
The German chemical giant on Friday said earnings before interest and taxes for 2024 are expected to be 2 billion euros ($2.08 billion), below the company-provided market consensus of 3.2 billion euros, as it expects to book a 1.9 billion impairment driven mainly by battery materials in the surface-technologies segment, and restructuring costs.
The company said net income is also expected to be affected by these charges. Although it didn't provide any figure, BASF said the analyst consensus of 2.2 billion euros won't be achieved.
Sales, however, are expected to be fall to 65.3 billion euros from 68.9 billion euros a year ago, but in line with analysts' estimates. The drop reflects a decline in price while volumes slightly increased. BASF said currency effects also had a negative impact.
Adjusted earnings before interest, taxes, depreciation and amortization--the company's preferred metric, which strips out exceptional and other one-off items--is expected to reach 7.9 billion euros, in line with consensus. Free cash flow for the year is expected to rise to 700 million euros, considerably ahead of the analyst consensus of 400 million, it said.
BASF will report its 2024 performance on Feb. 28.
Write to Michael Susin at michael.susin@wsj.com
(END) Dow Jones Newswires
January 24, 2025 12:48 ET (17:48 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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