Frankfurt, Germany, Apr. 30—BASF’s profit fell 20% in the first quarter, largely due to an increased tax bill. Net profit fell to 442 million euros ($486 million) in the first quarter from 552 million a year earlier.
Analysts surveyed by Dow Jones Newswires had predicted earnings of 466 million euros ($513 million) for the quarter.
The main reason for the drop, the company said, was a 79 million euro ($87 million) rise in income taxes for oil production, the company said. Last year's results reflected a gain on the sale of securities.
Overall sales rose 7% to 8.8 billion euros ($9.7 billion).
CEO Juergen Strube said the company “remained successful in a difficult environment” and had increased sales and earnings before financial items such as taxes across all its divisions.
“Lower costs and more efficient processes have played a major part in ensuring that all segments increased earnings compared with the same period in 2002,” said Strube.
