BASF Earnings: Subdued Demand Across Sectors and Regions Stifled Revenue Growth and Profitability

BASF’s first-quarter results reflected low demand across nearly all its end markets worldwide, reflecting an overall challenging global macroeconomic backdrop. First-quarter revenue came in just shy of EUR 20 billion, a 13% year-over-year decrease mostly driven by reduced sales volumes. The prevailing operating environment also contributed to a nearly EUR 1 billion year-over-year decline in the firmwide operating profits, yielding a 9.6% operating margin for the quarter. We’ll incorporate the firm’s full financial results shortly, but after this first look, we maintain our narrow moat rating and fair value estimate of EUR 65 ($17).