FRANKFURT (Reuters) – German chemicals giant BASF on Friday forecast a decline in 2022 operating earnings as the global business cycle eases and its supply chain remains vulnerable to disruptions.
Earnings before interest, tax and special items would likely come in between 6.6 billion euros ($7.4 billion) and 7.2 billion euros this year, down from 7.77 billion in 2021.
Despite a very strong start to the year, “BASF expects global economic growth of 3.8 percent to be somewhat more moderate in 2022 following the very strong recovery in 2021,” it said.
BASF’s forecast takes into account the risk of supply chain disruptions, more coronavirus pandemic headwinds and potentially higher energy prices, it added.
(Reporting by Ludwig Burger, editing by Kirsti Knolle)
