Chemicals and oil company BASF said its net profit fell 15% in the first quarter from a year ago, when one-time gains from the sale of its fertilizer business boosted earnings.
Otherwise, the company said it had a good quarter, with global revenues up on stronger sales at its oil and farm chemicals businesses.
Net profit fell to €1.45 billion from €1.7 billion in the first quarter of 2012, when the company had one-time gains of €645m from selling its fertilizer business in Antwerp, Belgium, to Russia's EuroChem.
Revenues for the quarter rose 4.8% to €19.74 billion. The company reaffirmed its outlook for the year, saying it would improve on last year's sales and earnings.
Profits for the quarter beat analysts' expectations of €1.365 billion as compiled by financial information provider FactSet.
A more detailed look at the results showed that sales and profits jumped at the farm chemicals division thanks to a good start to the growing season in France, Germany and eastern Europe with strong demand for weed killer and fungicides.
It said division sales were boosted by the addition of Becker Underwood, the Iowa-based maker of seed treatments and crop protection products. The company also said that sales and earnings declined at its specialised chemicals business, which saw lower profit margins due to higher raw materials costs.
However, BASF gave a cautious outlook for the global economy. It said it expects global economic growth to pick up "only slightly in 2013" and that the market environment "remains volatile."
BASF, which is based in Ludwigshafen in Germany, provides a good insight into the state of the global economy as it makes ingredients or raw materials for a wide range of industries including aerospace, farming, autos, construction, mass transit, packaging, consumer care and pharmaceuticals.
