"We are managing our inventories accordingly and are continuing our cost savings programs," said Kurt Bock, chief executive of the world's largest chemicals company by sales.
BASF nonetheless still expects sales and earnings in 2011 to significantly exceed the previous year's level.
Growth slowed in the third quarter, as expected. BASF's closely-watched adjusted earnings before interest and taxes slid 11% on the year to EUR1.96 billion, but was still above the EUR1.91 billion foreseen by a Dow Jones Newswires poll of 10 analysts.
Net profit fell 4.3% in the third quarter to EUR1.19 billion while sales rose about 12% to EUR17.61 billion, also beating analyst forecasts.
The company said it managed to pass on sharply higher raw materials prices through sales prices in almost all divisions.
The company's cyclical divisions, chemicals and plastics, increased sales in the third quarter, but the plastic division's EBIT fell 15% on the year due to a decline in the TDI business, a component used in polyurethane foams.
BASF has in recent years been moving away from cyclical commodity chemicals and towards specialty chemicals, for instance by acquiring Cognis in late 2010, and this year combining its styrenics business in a joint venture with
The inclusion of the Cognis business was mostly responsible for a 24% increase in the performance products division's sales in the third quarter, BASF said. The unit's adjusted EBIT increased 19% on the year.
BASF's overall earnings fell however, echoing recent news from Dutch chemical company Akzo Nobel NV (AKZA.AE) which last week abandoned its full-year outlook and launched a cost saving program as profit dropped amid a weakening global economy.
Peer E.I. DuPont de Nemours &
Still, a
Since the start of the year, BASF shares have shed about 16% of their value, while the Euro Stoxx Chemicals index which has dropped about 13%.
BASF shares closed at EUR50.60 Wednesday, valuing the company at around EUR46.48 billion.