The number was worse than both the market and the company predicted.
In October, BASF ramped up cost cuts in Europe.
It also scaled back investments as well as earnings projections that month due to what it called an "extremely uncertain" global economic outlook.
Operating income before special items fell to $4.15 billion in 2023 as lower sales and prices overshadowed the firm's cost-cutting efforts.
Net income was $244.8 million on sales of $74.9 billion - both missed analyst expectations.
BASF also said net profit was hit by just under $1.2 billion in impairments.
The company wouldn't comment further ahead of a detailed report scheduled for late February.
It all adds to the challenges the new CEO will face when he takes over in April.
But investors weren't too put off by Friday's announcement.
Shares were up over 1% and bounced back from a rout of more than 10% so far this year.
Analysts at Barclays said some investors had likely prepared for even worse results.
They further added that full-year free cash flow was slightly above their own estimate.
