2023 adj EBIT falls to 3.8 bln eur, missing target range
BASF takes 1.1 bln eur impairment charge
CEOdesignate Kamieth starts in April, with numerous challenges
Economic forecaster IFO says chemical industry outlook darkened
Shares up 1.2 after rout since start of 2024

FRANKFURT, Jan 19 Reuters German chemicals giant BASF on Friday posted a 45 drop in 2023 operating earnings, worse than both the market and company anticipated, adding to the challenges the new CEO will face when he takes the reins in April.

In October, BASF ramped up cost cuts in Europe and scaled back investments as well as earnings projections, citing an extremely uncertain global economic outlook.

Operating income before special items fell to 3.81 billion euros 4.15 billion, below the 4 billion euros at the bottom end of BASF39;s target range, as lower sales and prices overshadowed its costcutting efforts.

Net income was 225 million euros on sales of 68.9 billion euros, both also missing analyst expectations.

Net profit was hit by 1.1 billion euros in impairments in its Surface Technologies, Agricultural Solutions and Materials segments, BASF said in a statement citing preliminary figures.

The company would not comment further ahead of a detailed report scheduled for Feb. 23.

The shares, however, were up 1.2, bouncing back from a rout of more than 10 so far this year, as brokerage Baader Helvea said the free cash flow of 2.7 billion euros may be just about enough to justify a stable annual…