BASF aims for additional 200 million euros in cost cuts
Shares sink 6, worst performer on DAX
Share buyback programme cut short
BASF to slash 2,600 jobs, mainly in Germany

LUDWIGSHAFEN, Germany, Feb 24 Reuters BASF said it would cut 2,600 jobs and halt its share buybacks as it warned of a further decline in earnings reflecting high costs in Europe, uncertainty due to the war in Ukraine and rising interest rates.

The German chemicals giant said in a statement on Friday that 2023 earnings before interest and tax EBIT, adjusted for special items, would fall to between 4.8 billion euros 5.09 billion and 5.4 billion from 6.9 billion in 2022, which was down 11.5 from 2021.

At about 5.2 billion euros, the average analyst estimate for 2023 adjusted EBIT, posted on BASF39;s website, was in the upper half of the company39;s target range.

BASF, which in October laid out plans to cut annual nonproduction costs in Europe by 500 million euros, said on Friday that this would translate into about 2,600 job cuts, or about 2.3 of its global workforce. About 1,800 of the job losses will be at its Ludwigshafen headquarters.

It also announced plans to cut another 200 million euros in annual fixed production costs.

A share buyback programme, with 3 billion euros earmarked early last year, will be stopped after 1.4 billion euros was spent on its own shares due to profound changes in the global economy, it added.

Shares in the company slumped 6.4 to their lowest in almost two months…