BASF Q1 profits fall 68%

First quarter net profits for Germany-based BASF fell 68% to US $495 million, compared with the first quarter of 2008. Sales for the quarter fell by 23%, mainly due to persistently weak demand, reports the company.

In the Agricultural Solutions segment, however, first quarter 2009 ended with 21% increased sales, due to significantly higher volumes as well as higher prices. Additionally, the appreciation of the US dollar and the yen resulted in a positive currency effect. The depreciation of the British pound and several Eastern European currencies, however, had a negative effect on sales, even with higher sales volumes and prices, especially in fungicides and herbicides.

Significantly higher sales were posted in North America as well, also due to crop protection products and higher sales volumes and price increases for fungicides and herbicides. The significant increase in sales in Asia was due to strong demand in Japan, China, and India. In South America, products for sugar cane cultivation were weaker, with Argentina and southern Brazil were affected by droughts.