German chemical makers see weak first-quarter sales

The first preliminary results for the first quarter of 2023 are out from BASF and Covestro, and it appears that the year is off to a sluggish start for the European chemical industry. BASF’s sales are projected to decline by 13% for the quarter compared with the same period last year and to come in below analyst estimates. The world’s largest chemical maker blames “considerably lower volumes.” BASF’s earnings are expected to increase by 28%. But impairment charges for the firm’s Wintershall Dea affiliate, which had extensive operations in Russia, impacted BASF’s results a year ago. At another major German chemical maker, Covestro, first-quarter sales are projected to be down 20% year over year. The company also expects a small loss for the quarter. In its announcement, however, Covestro chief financial officer Thomas Toepfer says the results are “significantly better than expected at the beginning of the year.”