BASF sees a drop in profits

BASF, the German chemicals firm, warned of a significant drop in sales and earnings this year and said its second-quarter net profit plummeted nearly 74 per cent to €343m (£318m). The recession cut into sales and its acquisition of speciality chemicals firm Ciba also hit profits. The world’s largest chemical company by revenues said yesterday that sales had fallen 23.3 per cent to €12.5bn, in line with analyst forecasts