C&EN: "Chemical industry profits evaporate in Europe"

In this week's C&EN, the continued grim news (article by Alex Scott): 

Many of Europe’s biggest chemical producers—including the German firms BASF, Covestro, Evonik Industries, and Lanxess—have reported declining sales and net losses for the third quarter. Europe’s chemical sector is now firmly in cost-cutting mode, and some companies are closing manufacturing plants because of ongoing soft demand for their products.

BASF, still the world’s largest chemical company, recorded a loss of $264 million for the third quarter, compared with earnings of $962 million in the year-earlier period, and sales of $16.2 billion, down 28%. The German major cites considerably lower prices for products sold by its materials, chemicals, and surface technologies businesses and lower sales volumes across the board.

BASF announced measures to cut costs by about $215 million annually, adding to plans to cut costs by more than $750 million per year by 2027. The firm plans to reduce its capital investments over the next 5 years by about $4.3 billion, to $26.5 billion. “We have more projects than money,” CEO Martin Brudermüller said in a press briefing.

Lanxess also lost money in the third quarter. “We see no signs of recovery for the rest of the year,” CEO Matthias Zachert says in a press release. The firm plans a one-time savings of $107 million in 2023 and annual savings of $160 million starting in 2025. The cuts will eliminate 870 jobs, including 460 in Germany. The company says it has initiated the sale of its urethane chemical division and will use the cash to help pay down debt.

Full article here. It doesn't seem like there's any end in sight, which might be a sign of the bottom *(one hopes?) Here's hoping things turn around.