Earns Preview: BASF 1Q Earnings Expected Lower

GEORGE FREY

FRANKFURT (AP) — German chemical company BASF SE reports earnings for its first quarter April 30. The following is a summary of key developments and analyst opinion related to the period.

OVERVIEW: Ludwigshafen-based BASF, the world's largest chemical maker by sales, is expected to report sharply lower sales and earnings for first quarter as the world economic crisis has cut sharply into demand. BASF makes products ranging from plastics and glues to herbicides and pesticides. The company also explores for and refines oil and natural gas products.

In 2009, "the continuing global recession will cause the chemical market to shrink," the company said in February when it released 2008 figures. "Any forecast is currently subject to great uncertainty," it said at the time.

BASF, like many other German companies has been forced to scale back production, reduce staff and shutter plants.

In November, BASF said it would shut a total of 80 plants worldwide and cut production at 100 more.

The company has said cutbacks would affect plants including Ludwigshafen, Germany; Freeport, Texas; Geismar, Louisiana; Antwerp, Belgium; Nanjing, China; and Kuantan, Malaysia.