BASF Reports Steep Fall In 1Q Net Profit

GEORGE FREY

FRANKFURT (AP) — German chemical company BASF SE reported first-quarter net profit fell 68 percent as sales sank because of the recession and said it would cut at least 2,000 jobs this year.

Ludwigshafen-based BASF, the world's largest chemical company by sales, said Thursday net profit for the January-March period was down to euro375 million ($499 million) from euro1.2 billion in the first quarter of 2008.

Sales fell 23 percent to euro12.2 billion from last year's euro16 billion.

BASF said it faces enormous challenges, and expects "a decline in sales ... and an even greater decline in income from operations" in 2009. The effect of integrating Swiss chemical company Ciba Holding AG is also expected to hit BASF's results this year.

BASF has also said that integrating Norwegian energy exploration company Revus Energy, acquired late last year, will also have a negative impact this year.

"There is currently no sign of a reversal of this trend, and we do not consider temporary topping of inventories in some regions and industries to be signs of a sustainable turnaround," Chief Executive Juergen Hambrecht said.